Correlation Between Eurasia Mining and NESTE OYJ

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

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

Diversification Opportunities for Eurasia Mining and NESTE OYJ

0.0

Correlation Coefficient

Eurasia Mining  NESTE OYJ

Pay attention - limited upside

The 3 months correlation between Eurasia and NESTE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eurasia Mining Plc and NESTE OYJ UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NESTE OYJ UNSPADR and Eurasia 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 Eurasia Mining Plc are associated (or correlated) with NESTE OYJ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NESTE OYJ UNSPADR has no effect on the direction of Eurasia Mining i.e., Eurasia Mining and NESTE OYJ go up and down completely randomly.

Pair Corralation between Eurasia Mining and NESTE OYJ

If you would invest  540.00  in NESTE OYJ UNSPADR on October 23, 2024 and sell it today you would earn a total of  110.00  from holding NESTE OYJ UNSPADR or generate 20.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	94.12%
Values	Daily Returns

Eurasia Mining Plc  vs.  NESTE OYJ UNSPADR

Eurasia Mining Plc

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Eurasia Mining Plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Eurasia Mining is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

NESTE OYJ UNSPADR

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NESTE OYJ UNSPADR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Eurasia Mining and NESTE OYJ

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

The idea behind Eurasia Mining Plc and NESTE OYJ UNSPADR 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.