Correlation Between Exploits Discovery and Jaguar Mining

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

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

Diversification Opportunities for Exploits Discovery and Jaguar Mining

-0.11

Correlation Coefficient

Exploits Discovery  Jaguar Mining

Good diversification

The 3 months correlation between Exploits and Jaguar is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Exploits Discovery Corp and Jaguar Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaguar Mining and Exploits Discovery 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 Exploits Discovery Corp are associated (or correlated) with Jaguar Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaguar Mining has no effect on the direction of Exploits Discovery i.e., Exploits Discovery and Jaguar Mining go up and down completely randomly.

Pair Corralation between Exploits Discovery and Jaguar Mining

Assuming the 90 days horizon Exploits Discovery is expected to generate 7.15 times less return on investment than Jaguar Mining. In addition to that, Exploits Discovery is 1.83 times more volatile than Jaguar Mining. It trades about 0.01 of its total potential returns per unit of risk. Jaguar Mining is currently generating about 0.11 per unit of volatility. If you would invest  158.00  in Jaguar Mining on December 30, 2024 and sell it today you would earn a total of  44.00  from holding Jaguar Mining or generate 27.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Exploits Discovery Corp  vs.  Jaguar Mining

Exploits Discovery Corp

Risk-Adjusted Performance

Very Weak

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

Jaguar Mining

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jaguar Mining are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Jaguar Mining reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Exploits Discovery and Jaguar Mining

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

The idea behind Exploits Discovery Corp and Jaguar Mining 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.