Correlation Between Eskay Mining and Great Western

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

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

Diversification Opportunities for Eskay Mining and Great Western

0.0

Correlation Coefficient

Eskay Mining  Great Western

Pay attention - limited upside

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

Pair Corralation between Eskay Mining and Great Western

If you would invest  0.00  in Great Western Minerals on September 13, 2024 and sell it today you would earn a total of  0.00  from holding Great Western Minerals or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

Eskay Mining Corp  vs.  Great Western Minerals

Eskay Mining Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eskay Mining Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Great Western Minerals

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Eskay Mining and Great Western

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

The idea behind Eskay Mining Corp and Great Western Minerals 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.