Correlation Between Eastinco Mining and Sligro Food
Can any of the company-specific risk be diversified away by investing in both Eastinco Mining and Sligro Food 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 Eastinco Mining and Sligro Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastinco Mining Exploration and Sligro Food Group, you can compare the effects of market volatilities on Eastinco Mining and Sligro Food 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 Eastinco Mining with a short position of Sligro Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastinco Mining and Sligro Food.
Diversification Opportunities for Eastinco Mining and Sligro Food
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eastinco and Sligro is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Eastinco Mining Exploration and Sligro Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sligro Food Group and Eastinco 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 Eastinco Mining Exploration are associated (or correlated) with Sligro Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sligro Food Group has no effect on the direction of Eastinco Mining i.e., Eastinco Mining and Sligro Food go up and down completely randomly.
Pair Corralation between Eastinco Mining and Sligro Food
Assuming the 90 days trading horizon Eastinco Mining Exploration is expected to under-perform the Sligro Food. In addition to that, Eastinco Mining is 1.36 times more volatile than Sligro Food Group. It trades about -0.06 of its total potential returns per unit of risk. Sligro Food Group is currently generating about 0.05 per unit of volatility. If you would invest 1,111 in Sligro Food Group on October 7, 2024 and sell it today you would earn a total of 21.00 from holding Sligro Food Group or generate 1.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Eastinco Mining Exploration vs. Sligro Food Group
Performance |
Timeline |
Eastinco Mining Expl |
Sligro Food Group |
Eastinco Mining and Sligro Food Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eastinco Mining and Sligro Food
The main advantage of trading using opposite Eastinco Mining and Sligro Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastinco Mining position performs unexpectedly, Sligro Food 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 Sligro Food will offset losses from the drop in Sligro Food's long position.Eastinco Mining vs. Givaudan SA | Eastinco Mining vs. Antofagasta PLC | Eastinco Mining vs. Ferrexpo PLC | Eastinco Mining vs. Atalaya Mining |
Sligro Food vs. Zoom Video Communications | Sligro Food vs. Cairo Communication SpA | Sligro Food vs. Panther Metals PLC | Sligro Food vs. Gamma Communications PLC |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |