Correlation Between XLMedia PLC and Eastinco Mining
Can any of the company-specific risk be diversified away by investing in both XLMedia PLC and Eastinco 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 XLMedia PLC and Eastinco Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XLMedia PLC and Eastinco Mining Exploration, you can compare the effects of market volatilities on XLMedia PLC and Eastinco 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 XLMedia PLC with a short position of Eastinco Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of XLMedia PLC and Eastinco Mining.
Diversification Opportunities for XLMedia PLC and Eastinco Mining
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between XLMedia and Eastinco is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding XLMedia PLC and Eastinco Mining Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastinco Mining Expl and XLMedia PLC 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 XLMedia PLC are associated (or correlated) with Eastinco Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastinco Mining Expl has no effect on the direction of XLMedia PLC i.e., XLMedia PLC and Eastinco Mining go up and down completely randomly.
Pair Corralation between XLMedia PLC and Eastinco Mining
Assuming the 90 days trading horizon XLMedia PLC is expected to under-perform the Eastinco Mining. In addition to that, XLMedia PLC is 1.65 times more volatile than Eastinco Mining Exploration. It trades about -0.05 of its total potential returns per unit of risk. Eastinco Mining Exploration is currently generating about 0.07 per unit of volatility. If you would invest 5,100 in Eastinco Mining Exploration on October 26, 2024 and sell it today you would earn a total of 300.00 from holding Eastinco Mining Exploration or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XLMedia PLC vs. Eastinco Mining Exploration
Performance |
| Timeline |
| XLMedia PLC |
| Eastinco Mining Expl |
XLMedia PLC and Eastinco Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XLMedia PLC and Eastinco Mining
The main advantage of trading using opposite XLMedia PLC and Eastinco Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XLMedia PLC position performs unexpectedly, Eastinco 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 Eastinco Mining will offset losses from the drop in Eastinco Mining's long position.| XLMedia PLC vs. Take Two Interactive Software | XLMedia PLC vs. Bell Food Group | XLMedia PLC vs. Eneraqua Technologies PLC | XLMedia PLC vs. Learning Technologies Group |
| Eastinco Mining vs. GreenX Metals | Eastinco Mining vs. Atalaya Mining | Eastinco Mining vs. Ecofin Global Utilities | Eastinco Mining vs. Live Nation Entertainment |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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