Correlation Between E Split and Generation Mining
Can any of the company-specific risk be diversified away by investing in both E Split and Generation 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 E Split and Generation Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E Split Corp and Generation Mining, you can compare the effects of market volatilities on E Split and Generation 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 E Split with a short position of Generation Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Split and Generation Mining.
Diversification Opportunities for E Split and Generation Mining
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ENS-PA and Generation is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding E Split Corp and Generation Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generation Mining and E Split 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 E Split Corp are associated (or correlated) with Generation Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generation Mining has no effect on the direction of E Split i.e., E Split and Generation Mining go up and down completely randomly.
Pair Corralation between E Split and Generation Mining
Assuming the 90 days trading horizon E Split Corp is expected to generate 0.09 times more return on investment than Generation Mining. However, E Split Corp is 10.81 times less risky than Generation Mining. It trades about 0.18 of its potential returns per unit of risk. Generation Mining is currently generating about -0.08 per unit of risk. If you would invest 1,042 in E Split Corp on September 24, 2024 and sell it today you would earn a total of 77.00 from holding E Split Corp or generate 7.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
E Split Corp vs. Generation Mining
Performance |
Timeline |
E Split Corp |
Generation Mining |
E Split and Generation Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with E Split and Generation Mining
The main advantage of trading using opposite E Split and Generation Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Split position performs unexpectedly, Generation 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 Generation Mining will offset losses from the drop in Generation Mining's long position.E Split vs. Enbridge Pref 5 | E Split vs. Enbridge Pref 11 | E Split vs. Enbridge Pref L | E Split vs. E Split Corp |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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