Correlation Between EMX Royalty and Group Ten

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both EMX Royalty and Group Ten 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 EMX Royalty and Group Ten into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EMX Royalty Corp and Group Ten Metals, you can compare the effects of market volatilities on EMX Royalty and Group Ten 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 EMX Royalty with a short position of Group Ten. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMX Royalty and Group Ten.

Diversification Opportunities for EMX Royalty and Group Ten

-0.23
  Correlation Coefficient

Very good diversification

The 3 months correlation between EMX and Group is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding EMX Royalty Corp and Group Ten Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Group Ten Metals and EMX Royalty 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 EMX Royalty Corp are associated (or correlated) with Group Ten. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Group Ten Metals has no effect on the direction of EMX Royalty i.e., EMX Royalty and Group Ten go up and down completely randomly.

Pair Corralation between EMX Royalty and Group Ten

Considering the 90-day investment horizon EMX Royalty Corp is expected to generate 0.26 times more return on investment than Group Ten. However, EMX Royalty Corp is 3.78 times less risky than Group Ten. It trades about 0.04 of its potential returns per unit of risk. Group Ten Metals is currently generating about -0.06 per unit of risk. If you would invest  174.00  in EMX Royalty Corp on December 2, 2024 and sell it today you would earn a total of  5.00  from holding EMX Royalty Corp or generate 2.87% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

EMX Royalty Corp  vs.  Group Ten Metals

 Performance 
       Timeline  
EMX Royalty Corp 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in EMX Royalty Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong primary indicators, EMX Royalty is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Group Ten Metals 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Group Ten Metals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

EMX Royalty and Group Ten Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with EMX Royalty and Group Ten

The main advantage of trading using opposite EMX Royalty and Group Ten positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMX Royalty position performs unexpectedly, Group Ten 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 Group Ten will offset losses from the drop in Group Ten's long position.
The idea behind EMX Royalty Corp and Group Ten Metals 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.
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

Other Complementary Tools

Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes