Correlation Between Stone Gold and Eskay Mining
Can any of the company-specific risk be diversified away by investing in both Stone Gold 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 Stone Gold and Eskay Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stone Gold and Eskay Mining Corp, you can compare the effects of market volatilities on Stone Gold 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 Stone Gold with a short position of Eskay Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stone Gold and Eskay Mining.
Diversification Opportunities for Stone Gold and Eskay Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stone and Eskay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Stone Gold 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 Stone Gold 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 Stone Gold 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 Stone Gold i.e., Stone Gold and Eskay Mining go up and down completely randomly.
Pair Corralation between Stone Gold and Eskay Mining
Assuming the 90 days horizon Stone Gold is expected to generate 1.25 times more return on investment than Eskay Mining. However, Stone Gold is 1.25 times more volatile than Eskay Mining Corp. It trades about -0.04 of its potential returns per unit of risk. Eskay Mining Corp is currently generating about -0.06 per unit of risk. If you would invest 10.00 in Stone Gold on September 12, 2024 and sell it today you would lose (9.00) from holding Stone Gold or give up 90.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Stone Gold vs. Eskay Mining Corp
Performance |
| Timeline |
| Stone Gold |
| Eskay Mining Corp |
Stone Gold and Eskay Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stone Gold and Eskay Mining
The main advantage of trading using opposite Stone Gold and Eskay Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stone Gold 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.| Stone Gold vs. BCM Resources | Stone Gold vs. Magna Mining | Stone Gold vs. Fathom Nickel | Stone Gold vs. York Harbour Metals |
| 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |