Correlation Between Duketon Mining and Balkan Mining

Can any of the company-specific risk be diversified away by investing in both Duketon Mining and Balkan 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 Duketon Mining and Balkan Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Duketon Mining and Balkan Mining and, you can compare the effects of market volatilities on Duketon Mining and Balkan 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 Duketon Mining with a short position of Balkan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duketon Mining and Balkan Mining.

Diversification Opportunities for Duketon Mining and Balkan Mining

0.51

Correlation Coefficient

Duketon Mining  Balkan Mining

Very weak diversification

The 3 months correlation between Duketon and Balkan is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Duketon Mining and Balkan Mining and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Balkan Mining and Duketon 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 Duketon Mining are associated (or correlated) with Balkan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Balkan Mining has no effect on the direction of Duketon Mining i.e., Duketon Mining and Balkan Mining go up and down completely randomly.

Pair Corralation between Duketon Mining and Balkan Mining

Assuming the 90 days trading horizon Duketon Mining is expected to generate 3.71 times less return on investment than Balkan Mining. In addition to that, Duketon Mining is 1.06 times more volatile than Balkan Mining and. It trades about 0.01 of its total potential returns per unit of risk. Balkan Mining and is currently generating about 0.05 per unit of volatility. If you would invest  4.90  in Balkan Mining and on October 22, 2024 and sell it today you would earn a total of  0.10  from holding Balkan Mining and or generate 2.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	94.74%
Values	Daily Returns

Duketon Mining  vs.  Balkan Mining and

Duketon Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Duketon Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's primary indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Balkan Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Balkan Mining and has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's primary indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Duketon Mining and Balkan Mining

The main advantage of trading using opposite Duketon Mining and Balkan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duketon Mining position performs unexpectedly, Balkan 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 Balkan Mining will offset losses from the drop in Balkan Mining's long position.

The idea behind Duketon Mining and Balkan Mining and pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.