Correlation Between Materion and Eskay Mining
Can any of the company-specific risk be diversified away by investing in both Materion 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 Materion and Eskay Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Materion and Eskay Mining Corp, you can compare the effects of market volatilities on Materion 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 Materion with a short position of Eskay Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Materion and Eskay Mining.
Diversification Opportunities for Materion and Eskay Mining
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Materion and Eskay is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Materion 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 Materion 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 Materion 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 Materion i.e., Materion and Eskay Mining go up and down completely randomly.
Pair Corralation between Materion and Eskay Mining
Given the investment horizon of 90 days Materion is expected to generate 0.45 times more return on investment than Eskay Mining. However, Materion is 2.23 times less risky than Eskay Mining. It trades about 0.24 of its potential returns per unit of risk. Eskay Mining Corp is currently generating about 0.03 per unit of risk. If you would invest 10,152 in Materion on September 1, 2024 and sell it today you would earn a total of 1,410 from holding Materion or generate 13.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Materion vs. Eskay Mining Corp
Performance |
| Timeline |
| Materion |
| Eskay Mining Corp |
Materion and Eskay Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Materion and Eskay Mining
The main advantage of trading using opposite Materion and Eskay Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Materion 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.| Materion vs. Skeena Resources | Materion vs. Compass Minerals International | Materion vs. IperionX Limited American | Materion vs. EMX Royalty Corp |
| 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 Stocks Directory module to find actively traded stocks across global markets.
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