Correlation Between Goliath Resources and Eskay Mining
Can any of the company-specific risk be diversified away by investing in both Goliath Resources 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 Goliath Resources and Eskay Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goliath Resources and Eskay Mining Corp, you can compare the effects of market volatilities on Goliath Resources 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 Goliath Resources with a short position of Eskay Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goliath Resources and Eskay Mining.
Diversification Opportunities for Goliath Resources and Eskay Mining
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Goliath and Eskay is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Goliath Resources 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 Goliath Resources 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 Goliath Resources 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 Goliath Resources i.e., Goliath Resources and Eskay Mining go up and down completely randomly.
Pair Corralation between Goliath Resources and Eskay Mining
Assuming the 90 days horizon Goliath Resources is expected to generate 2.26 times more return on investment than Eskay Mining. However, Goliath Resources is 2.26 times more volatile than Eskay Mining Corp. It trades about 0.31 of its potential returns per unit of risk. Eskay Mining Corp is currently generating about 0.08 per unit of risk. If you would invest 113.00 in Goliath Resources on November 3, 2024 and sell it today you would earn a total of 72.00 from holding Goliath Resources or generate 63.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goliath Resources vs. Eskay Mining Corp
Performance |
| Timeline |
| Goliath Resources |
| Eskay Mining Corp |
Goliath Resources and Eskay Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goliath Resources and Eskay Mining
The main advantage of trading using opposite Goliath Resources and Eskay Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goliath Resources 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.| Goliath Resources vs. Eskay Mining Corp | Goliath Resources vs. Lion One Metals | Goliath Resources vs. Cassiar Gold Corp | Goliath Resources vs. Blackrock Silver Corp |
| Eskay Mining vs. Grande Portage Resources | Eskay Mining vs. Strikepoint Gold | Eskay Mining vs. Blackrock Silver Corp | Eskay Mining vs. American Creek Resources |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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