Correlation Between StrikePoint Gold and Eagle Plains
Can any of the company-specific risk be diversified away by investing in both StrikePoint Gold and Eagle Plains 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 StrikePoint Gold and Eagle Plains into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between StrikePoint Gold and Eagle Plains Resources, you can compare the effects of market volatilities on StrikePoint Gold and Eagle Plains 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 StrikePoint Gold with a short position of Eagle Plains. Check out your portfolio center. Please also check ongoing floating volatility patterns of StrikePoint Gold and Eagle Plains.
Diversification Opportunities for StrikePoint Gold and Eagle Plains
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between StrikePoint and Eagle is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding StrikePoint Gold and Eagle Plains Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Plains Resources and StrikePoint 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 StrikePoint Gold are associated (or correlated) with Eagle Plains. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Plains Resources has no effect on the direction of StrikePoint Gold i.e., StrikePoint Gold and Eagle Plains go up and down completely randomly.
Pair Corralation between StrikePoint Gold and Eagle Plains
Assuming the 90 days horizon StrikePoint Gold is expected to generate 16.07 times more return on investment than Eagle Plains. However, StrikePoint Gold is 16.07 times more volatile than Eagle Plains Resources. It trades about 0.17 of its potential returns per unit of risk. Eagle Plains Resources is currently generating about 0.03 per unit of risk. If you would invest 55.00 in StrikePoint Gold on September 3, 2024 and sell it today you would lose (40.00) from holding StrikePoint Gold or give up 72.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
StrikePoint Gold vs. Eagle Plains Resources
Performance |
| Timeline |
| StrikePoint Gold |
| Eagle Plains Resources |
StrikePoint Gold and Eagle Plains Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with StrikePoint Gold and Eagle Plains
The main advantage of trading using opposite StrikePoint Gold and Eagle Plains positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if StrikePoint Gold position performs unexpectedly, Eagle Plains 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 Eagle Plains will offset losses from the drop in Eagle Plains' long position.| StrikePoint Gold vs. Commerce Resources Corp | StrikePoint Gold vs. Great Western Minerals | StrikePoint Gold vs. Silver Elephant Mining | StrikePoint Gold vs. Eskay Mining Corp |
| Eagle Plains vs. Norra Metals Corp | Eagle Plains vs. E79 Resources Corp | Eagle Plains vs. Voltage Metals Corp | Eagle Plains vs. Cantex Mine Development |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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