Correlation Between Semirara Mining and East West
Can any of the company-specific risk be diversified away by investing in both Semirara Mining and East West 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 Semirara Mining and East West into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Semirara Mining Corp and East West Banking, you can compare the effects of market volatilities on Semirara Mining and East West 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 Semirara Mining with a short position of East West. Check out your portfolio center. Please also check ongoing floating volatility patterns of Semirara Mining and East West.
Diversification Opportunities for Semirara Mining and East West
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Semirara and East is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Semirara Mining Corp and East West Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on East West Banking and Semirara 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 Semirara Mining Corp are associated (or correlated) with East West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of East West Banking has no effect on the direction of Semirara Mining i.e., Semirara Mining and East West go up and down completely randomly.
Pair Corralation between Semirara Mining and East West
Assuming the 90 days trading horizon Semirara Mining Corp is expected to generate 0.95 times more return on investment than East West. However, Semirara Mining Corp is 1.06 times less risky than East West. It trades about 0.07 of its potential returns per unit of risk. East West Banking is currently generating about -0.12 per unit of risk. If you would invest 3,124 in Semirara Mining Corp on August 25, 2024 and sell it today you would earn a total of 51.00 from holding Semirara Mining Corp or generate 1.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Semirara Mining Corp vs. East West Banking
Performance |
| Timeline |
| Semirara Mining Corp |
| East West Banking |
Semirara Mining and East West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Semirara Mining and East West
The main advantage of trading using opposite Semirara Mining and East West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Semirara Mining position performs unexpectedly, East West 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 East West will offset losses from the drop in East West's long position.| Semirara Mining vs. Robinsons Retail Holdings | Semirara Mining vs. Premiere Entertainment | Semirara Mining vs. Globe Telecom | Semirara Mining vs. Metro Retail Stores |
| East West vs. Robinsons Retail Holdings | East West vs. Converge Information Communications | East West vs. Atlas Consolidated Mining | East West vs. Lepanto Consolidated 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |