Correlation Between Maggie Beer and EQ Resources
Can any of the company-specific risk be diversified away by investing in both Maggie Beer and EQ Resources 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 Maggie Beer and EQ Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maggie Beer Holdings and EQ Resources, you can compare the effects of market volatilities on Maggie Beer and EQ Resources 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 Maggie Beer with a short position of EQ Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maggie Beer and EQ Resources.
Diversification Opportunities for Maggie Beer and EQ Resources
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Maggie and EQR is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Maggie Beer Holdings and EQ Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EQ Resources and Maggie Beer 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 Maggie Beer Holdings are associated (or correlated) with EQ Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EQ Resources has no effect on the direction of Maggie Beer i.e., Maggie Beer and EQ Resources go up and down completely randomly.
Pair Corralation between Maggie Beer and EQ Resources
Assuming the 90 days trading horizon Maggie Beer Holdings is expected to generate 0.71 times more return on investment than EQ Resources. However, Maggie Beer Holdings is 1.41 times less risky than EQ Resources. It trades about 0.1 of its potential returns per unit of risk. EQ Resources is currently generating about -0.28 per unit of risk. If you would invest 5.50 in Maggie Beer Holdings on October 25, 2024 and sell it today you would earn a total of 0.30 from holding Maggie Beer Holdings or generate 5.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Maggie Beer Holdings vs. EQ Resources
Performance |
| Timeline |
| Maggie Beer Holdings |
| EQ Resources |
Maggie Beer and EQ Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maggie Beer and EQ Resources
The main advantage of trading using opposite Maggie Beer and EQ Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maggie Beer position performs unexpectedly, EQ Resources 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 EQ Resources will offset losses from the drop in EQ Resources' long position.| Maggie Beer vs. Steamships Trading | Maggie Beer vs. Truscott Mining Corp | Maggie Beer vs. Diversified United Investment | Maggie Beer vs. Clime Investment Management |
| EQ Resources vs. Stelar Metals | EQ Resources vs. Collins Foods | EQ Resources vs. Black Rock Mining | EQ Resources vs. Liberty Financial Group |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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