Correlation Between Eagle Plains and Giga Metals
Can any of the company-specific risk be diversified away by investing in both Eagle Plains and Giga Metals 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 Eagle Plains and Giga Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Plains Resources and Giga Metals, you can compare the effects of market volatilities on Eagle Plains and Giga Metals 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 Eagle Plains with a short position of Giga Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Plains and Giga Metals.
Diversification Opportunities for Eagle Plains and Giga Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eagle and Giga is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Plains Resources and Giga Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Giga Metals and Eagle Plains 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 Eagle Plains Resources are associated (or correlated) with Giga Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Giga Metals has no effect on the direction of Eagle Plains i.e., Eagle Plains and Giga Metals go up and down completely randomly.
Pair Corralation between Eagle Plains and Giga Metals
If you would invest 7.00 in Eagle Plains Resources on December 3, 2024 and sell it today you would earn a total of 2.00 from holding Eagle Plains Resources or generate 28.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Eagle Plains Resources vs. Giga Metals
Performance |
Timeline |
Eagle Plains Resources |
Giga Metals |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Eagle Plains and Giga Metals Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eagle Plains and Giga Metals
The main advantage of trading using opposite Eagle Plains and Giga Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Plains position performs unexpectedly, Giga Metals 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 Giga Metals will offset losses from the drop in Giga Metals' long position.Eagle Plains vs. Norra Metals Corp | Eagle Plains vs. E79 Resources Corp | Eagle Plains vs. Voltage Metals Corp | Eagle Plains vs. Cantex Mine Development |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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