Correlation Between Seraphim Space and Eastinco Mining

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

By analyzing existing cross correlation between Seraphim Space Investment and Eastinco Mining Exploration, you can compare the effects of market volatilities on Seraphim Space and Eastinco 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 Seraphim Space with a short position of Eastinco Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seraphim Space and Eastinco Mining.

Diversification Opportunities for Seraphim Space and Eastinco Mining

0.28

Correlation Coefficient

Seraphim Space  Eastinco Mining

Modest diversification

The 3 months correlation between Seraphim and Eastinco is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Seraphim Space Investment and Eastinco Mining Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastinco Mining Expl and Seraphim Space 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 Seraphim Space Investment are associated (or correlated) with Eastinco Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastinco Mining Expl has no effect on the direction of Seraphim Space i.e., Seraphim Space and Eastinco Mining go up and down completely randomly.

Pair Corralation between Seraphim Space and Eastinco Mining

Assuming the 90 days trading horizon Seraphim Space Investment is expected to generate 0.92 times more return on investment than Eastinco Mining. However, Seraphim Space Investment is 1.09 times less risky than Eastinco Mining. It trades about 0.1 of its potential returns per unit of risk. Eastinco Mining Exploration is currently generating about 0.09 per unit of risk. If you would invest  4,700  in Seraphim Space Investment on October 22, 2024 and sell it today you would earn a total of  500.00  from holding Seraphim Space Investment or generate 10.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Seraphim Space Investment  vs.  Eastinco Mining Exploration

Seraphim Space Investment

Risk-Adjusted Performance

7 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Seraphim Space Investment are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Seraphim Space may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Eastinco Mining Expl

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Eastinco Mining Exploration are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Eastinco Mining may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Seraphim Space and Eastinco Mining

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

The idea behind Seraphim Space Investment and Eastinco Mining Exploration 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.