Correlation Between Evergold Corp and Eskay Mining
Can any of the company-specific risk be diversified away by investing in both Evergold Corp and Eskay Mining at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Evergold Corp and Eskay Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evergold Corp and Eskay Mining Corp, you can compare the effects of market volatilities on Evergold Corp and Eskay Mining and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Evergold Corp with a short position of Eskay Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evergold Corp and Eskay Mining.
Diversification Opportunities for Evergold Corp and Eskay Mining
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Evergold and Eskay is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Evergold Corp and Eskay Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eskay Mining Corp and Evergold Corp is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Evergold Corp are associated (or correlated) with Eskay Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eskay Mining Corp has no effect on the direction of Evergold Corp i.e., Evergold Corp and Eskay Mining go up and down completely randomly.
Pair Corralation between Evergold Corp and Eskay Mining
Assuming the 90 days horizon Evergold Corp is expected to generate 3.08 times more return on investment than Eskay Mining. However, Evergold Corp is 3.08 times more volatile than Eskay Mining Corp. It trades about 0.05 of its potential returns per unit of risk. Eskay Mining Corp is currently generating about -0.07 per unit of risk. If you would invest 2.00 in Evergold Corp on September 1, 2024 and sell it today you would lose (1.00) from holding Evergold Corp or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evergold Corp vs. Eskay Mining Corp
Performance |
| Timeline |
| Evergold Corp |
| Eskay Mining Corp |
Evergold Corp and Eskay Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evergold Corp and Eskay Mining
The main advantage of trading using opposite Evergold Corp and Eskay Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evergold Corp position performs unexpectedly, Eskay Mining can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Eskay Mining will offset losses from the drop in Eskay Mining's long position.| Evergold Corp vs. Champion Bear Resources | Evergold Corp vs. Edison Cobalt Corp | Evergold Corp vs. Aurelia Metals Limited | Evergold Corp vs. IGO Limited |
| Eskay Mining vs. Aftermath Silver | Eskay Mining vs. Group Ten Metals | Eskay Mining vs. Prime Mining Corp | Eskay Mining vs. Juggernaut Exploration |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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