Correlation Between Easy Software and Minerals Technologies

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

Diversification Opportunities for Easy Software and Minerals Technologies

EasyMineralsDiversified AwayEasyMineralsDiversified Away100%
-0.27
  Correlation Coefficient

Very good diversification

The 3 months correlation between Easy and Minerals is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Easy Software AG and Minerals Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minerals Technologies and Easy Software 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 Easy Software AG are associated (or correlated) with Minerals Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minerals Technologies has no effect on the direction of Easy Software i.e., Easy Software and Minerals Technologies go up and down completely randomly.

Pair Corralation between Easy Software and Minerals Technologies

Assuming the 90 days trading horizon Easy Software AG is expected to generate 1.45 times more return on investment than Minerals Technologies. However, Easy Software is 1.45 times more volatile than Minerals Technologies. It trades about 0.12 of its potential returns per unit of risk. Minerals Technologies is currently generating about 0.01 per unit of risk. If you would invest  1,500  in Easy Software AG on October 21, 2024 and sell it today you would earn a total of  300.00  from holding Easy Software AG or generate 20.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Easy Software AG  vs.  Minerals Technologies

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 0510152025
JavaScript chart by amCharts 3.21.15ESY MNK
       Timeline  
Easy Software AG 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Easy Software AG are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, Easy Software displayed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan14.51515.51616.51717.51818.519
Minerals Technologies 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Minerals Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Minerals Technologies is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan7072747678

Easy Software and Minerals Technologies Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-8.42-6.3-4.19-2.080.03732.24.446.678.91 0.020.040.060.080.10
JavaScript chart by amCharts 3.21.15ESY MNK
       Returns  

Pair Trading with Easy Software and Minerals Technologies

The main advantage of trading using opposite Easy Software and Minerals Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easy Software position performs unexpectedly, Minerals Technologies 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 Minerals Technologies will offset losses from the drop in Minerals Technologies' long position.
The idea behind Easy Software AG and Minerals Technologies 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

Other Complementary Tools

FinTech Suite
Use AI to screen and filter profitable investment opportunities
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.