Correlation Between Nexa Resources and Eskay Mining
Can any of the company-specific risk be diversified away by investing in both Nexa 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 Nexa 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 Nexa Resources SA and Eskay Mining Corp, you can compare the effects of market volatilities on Nexa 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 Nexa Resources with a short position of Eskay Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexa Resources and Eskay Mining.
Diversification Opportunities for Nexa Resources and Eskay Mining
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nexa and Eskay is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Nexa Resources SA 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 Nexa 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 Nexa Resources SA 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 Nexa Resources i.e., Nexa Resources and Eskay Mining go up and down completely randomly.
Pair Corralation between Nexa Resources and Eskay Mining
Given the investment horizon of 90 days Nexa Resources SA is expected to under-perform the Eskay Mining. In addition to that, Nexa Resources is 1.25 times more volatile than Eskay Mining Corp. It trades about -0.23 of its total potential returns per unit of risk. Eskay Mining Corp is currently generating about -0.08 per unit of volatility. If you would invest 13.00 in Eskay Mining Corp on October 22, 2024 and sell it today you would lose (1.00) from holding Eskay Mining Corp or give up 7.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nexa Resources SA vs. Eskay Mining Corp
Performance |
| Timeline |
| Nexa Resources SA |
| Eskay Mining Corp |
Nexa Resources and Eskay Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexa Resources and Eskay Mining
The main advantage of trading using opposite Nexa Resources and Eskay Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexa 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.| Nexa Resources vs. Materion | Nexa Resources vs. Fury Gold Mines | Nexa Resources vs. Eskay Mining Corp | Nexa Resources 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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