Correlation Between Evolution Mining and COMINTL BANK
Can any of the company-specific risk be diversified away by investing in both Evolution Mining and COMINTL BANK 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 COMINTL BANK 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 COMINTL BANK ADR1, you can compare the effects of market volatilities on Evolution Mining and COMINTL BANK 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 COMINTL BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolution Mining and COMINTL BANK.
Diversification Opportunities for Evolution Mining and COMINTL BANK
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Evolution and COMINTL is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Evolution Mining Limited and COMINTL BANK ADR1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMINTL BANK ADR1 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 COMINTL BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMINTL BANK ADR1 has no effect on the direction of Evolution Mining i.e., Evolution Mining and COMINTL BANK go up and down completely randomly.
Pair Corralation between Evolution Mining and COMINTL BANK
Assuming the 90 days horizon Evolution Mining Limited is expected to generate 0.87 times more return on investment than COMINTL BANK. However, Evolution Mining Limited is 1.14 times less risky than COMINTL BANK. It trades about 0.07 of its potential returns per unit of risk. COMINTL BANK ADR1 is currently generating about 0.03 per unit of risk. If you would invest 306.00 in Evolution Mining Limited on September 4, 2024 and sell it today you would earn a total of 9.00 from holding Evolution Mining Limited or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Evolution Mining Limited vs. COMINTL BANK ADR1
Performance |
| Timeline |
| Evolution Mining |
| COMINTL BANK ADR1 |
Evolution Mining and COMINTL BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolution Mining and COMINTL BANK
The main advantage of trading using opposite Evolution Mining and COMINTL BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolution Mining position performs unexpectedly, COMINTL BANK 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 COMINTL BANK will offset losses from the drop in COMINTL BANK's long position.| Evolution Mining vs. ZIJIN MINH UNSPADR20 | Evolution Mining vs. Barrick Gold | Evolution Mining vs. Superior Plus Corp | Evolution Mining vs. NMI Holdings |
| COMINTL BANK vs. Superior Plus Corp | COMINTL BANK vs. NMI Holdings | COMINTL BANK vs. Origin Agritech | COMINTL BANK vs. SIVERS SEMICONDUCTORS AB |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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