Correlation Between CoinSmart Financial and Entree Resources

Can any of the company-specific risk be diversified away by investing in both CoinSmart Financial and Entree Resources 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 CoinSmart Financial and Entree Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CoinSmart Financial and Entree Resources, you can compare the effects of market volatilities on CoinSmart Financial and Entree Resources 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 CoinSmart Financial with a short position of Entree Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of CoinSmart Financial and Entree Resources.

Diversification Opportunities for CoinSmart Financial and Entree Resources

0.0

Correlation Coefficient

CoinSmart Financial  Entree Resources

Pay attention - limited upside

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

Pair Corralation between CoinSmart Financial and Entree Resources

If you would invest  118.00  in Entree Resources on October 26, 2024 and sell it today you would earn a total of  134.00  from holding Entree Resources or generate 113.56% return on investment over 90 days.

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

CoinSmart Financial  vs.  Entree Resources

CoinSmart Financial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CoinSmart Financial has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, CoinSmart Financial is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Entree Resources

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Entree Resources are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Entree Resources displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CoinSmart Financial and Entree Resources

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

The idea behind CoinSmart Financial and Entree Resources 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.