Correlation Between Peel Mining and EP Financial
Can any of the company-specific risk be diversified away by investing in both Peel Mining and EP Financial 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 Peel Mining and EP Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peel Mining and EP Financial Group, you can compare the effects of market volatilities on Peel Mining and EP Financial 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 Peel Mining with a short position of EP Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peel Mining and EP Financial.
Diversification Opportunities for Peel Mining and EP Financial
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Peel and EP1 is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Peel Mining and EP Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EP Financial Group and Peel Mining 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 Peel Mining are associated (or correlated) with EP Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EP Financial Group has no effect on the direction of Peel Mining i.e., Peel Mining and EP Financial go up and down completely randomly.
Pair Corralation between Peel Mining and EP Financial
Assuming the 90 days trading horizon Peel Mining is expected to under-perform the EP Financial. In addition to that, Peel Mining is 1.22 times more volatile than EP Financial Group. It trades about -0.11 of its total potential returns per unit of risk. EP Financial Group is currently generating about 0.17 per unit of volatility. If you would invest 47.00 in EP Financial Group on August 27, 2024 and sell it today you would earn a total of 4.00 from holding EP Financial Group or generate 8.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peel Mining vs. EP Financial Group
Performance |
| Timeline |
| Peel Mining |
| EP Financial Group |
Peel Mining and EP Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peel Mining and EP Financial
The main advantage of trading using opposite Peel Mining and EP Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peel Mining position performs unexpectedly, EP Financial 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 EP Financial will offset losses from the drop in EP Financial's long position.| Peel Mining vs. Mayfield Childcare | Peel Mining vs. Kip McGrath Education | Peel Mining vs. Hudson Investment Group | Peel Mining vs. Dexus Convenience Retail |
| EP Financial vs. Perseus Mining | EP Financial vs. My Foodie Box | EP Financial vs. Spirit Telecom | EP Financial vs. Eagle Mountain 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |