Correlation Between Intermediate Capital and Eastinco Mining
Can any of the company-specific risk be diversified away by investing in both Intermediate Capital and Eastinco 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 Intermediate Capital and Eastinco Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intermediate Capital Group and Eastinco Mining Exploration, you can compare the effects of market volatilities on Intermediate Capital and Eastinco 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 Intermediate Capital with a short position of Eastinco Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermediate Capital and Eastinco Mining.
Diversification Opportunities for Intermediate Capital and Eastinco Mining
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Intermediate and Eastinco is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Intermediate Capital Group and Eastinco Mining Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastinco Mining Expl and Intermediate Capital 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 Intermediate Capital Group are associated (or correlated) with Eastinco Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastinco Mining Expl has no effect on the direction of Intermediate Capital i.e., Intermediate Capital and Eastinco Mining go up and down completely randomly.
Pair Corralation between Intermediate Capital and Eastinco Mining
Assuming the 90 days trading horizon Intermediate Capital Group is expected to generate 0.81 times more return on investment than Eastinco Mining. However, Intermediate Capital Group is 1.24 times less risky than Eastinco Mining. It trades about 0.01 of its potential returns per unit of risk. Eastinco Mining Exploration is currently generating about -0.21 per unit of risk. If you would invest 205,118 in Intermediate Capital Group on September 22, 2024 and sell it today you would lose (118.00) from holding Intermediate Capital Group or give up 0.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intermediate Capital Group vs. Eastinco Mining Exploration
Performance |
| Timeline |
| Intermediate Capital |
| Eastinco Mining Expl |
Intermediate Capital and Eastinco Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermediate Capital and Eastinco Mining
The main advantage of trading using opposite Intermediate Capital and Eastinco Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermediate Capital position performs unexpectedly, Eastinco 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 Eastinco Mining will offset losses from the drop in Eastinco Mining's long position.| Intermediate Capital vs. Catalyst Media Group | Intermediate Capital vs. CATLIN GROUP | Intermediate Capital vs. Tamburi Investment Partners | Intermediate Capital vs. Magnora ASA |
| Eastinco Mining vs. Givaudan SA | Eastinco Mining vs. Antofagasta PLC | Eastinco Mining vs. Ferrexpo PLC | Eastinco Mining vs. Atalaya Mining |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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