Correlation Between Evolution Mining and Global Ship
Can any of the company-specific risk be diversified away by investing in both Evolution Mining and Global Ship 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 Evolution Mining and Global Ship into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolution Mining Limited and Global Ship Lease, you can compare the effects of market volatilities on Evolution Mining and Global Ship 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 Evolution Mining with a short position of Global Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolution Mining and Global Ship.
Diversification Opportunities for Evolution Mining and Global Ship
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Evolution and Global is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Evolution Mining Limited and Global Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Ship Lease and Evolution 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 Evolution Mining Limited are associated (or correlated) with Global Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Ship Lease has no effect on the direction of Evolution Mining i.e., Evolution Mining and Global Ship go up and down completely randomly.
Pair Corralation between Evolution Mining and Global Ship
Assuming the 90 days horizon Evolution Mining Limited is expected to generate 2.36 times more return on investment than Global Ship. However, Evolution Mining is 2.36 times more volatile than Global Ship Lease. It trades about 0.18 of its potential returns per unit of risk. Global Ship Lease is currently generating about 0.31 per unit of risk. If you would invest 330.00 in Evolution Mining Limited on November 28, 2024 and sell it today you would earn a total of 38.00 from holding Evolution Mining Limited or generate 11.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Evolution Mining Limited vs. Global Ship Lease
Performance |
| Timeline |
| Evolution Mining |
| Global Ship Lease |
Evolution Mining and Global Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolution Mining and Global Ship
The main advantage of trading using opposite Evolution Mining and Global Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolution Mining position performs unexpectedly, Global Ship 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 Global Ship will offset losses from the drop in Global Ship's long position.| Evolution Mining vs. American Airlines Group | Evolution Mining vs. Renesas Electronics | Evolution Mining vs. LPKF Laser Electronics | Evolution Mining vs. UMC Electronics Co |
| Global Ship vs. WT OFFSHORE | Global Ship vs. SBM OFFSHORE | Global Ship vs. American Airlines Group | Global Ship vs. alstria office REIT AG |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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