Correlation Between Eureka Design and Unique Mining
Can any of the company-specific risk be diversified away by investing in both Eureka Design and Unique 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 Eureka Design and Unique Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eureka Design Public and Unique Mining Services, you can compare the effects of market volatilities on Eureka Design and Unique 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 Eureka Design with a short position of Unique Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eureka Design and Unique Mining.
Diversification Opportunities for Eureka Design and Unique Mining
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eureka and Unique is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Eureka Design Public and Unique Mining Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unique Mining Services and Eureka Design 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 Eureka Design Public are associated (or correlated) with Unique Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unique Mining Services has no effect on the direction of Eureka Design i.e., Eureka Design and Unique Mining go up and down completely randomly.
Pair Corralation between Eureka Design and Unique Mining
Assuming the 90 days trading horizon Eureka Design Public is expected to generate 0.4 times more return on investment than Unique Mining. However, Eureka Design Public is 2.52 times less risky than Unique Mining. It trades about 0.22 of its potential returns per unit of risk. Unique Mining Services is currently generating about -0.07 per unit of risk. If you would invest 53.00 in Eureka Design Public on September 14, 2024 and sell it today you would earn a total of 23.00 from holding Eureka Design Public or generate 43.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Eureka Design Public vs. Unique Mining Services
Performance |
Timeline |
Eureka Design Public |
Unique Mining Services |
Eureka Design and Unique Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eureka Design and Unique Mining
The main advantage of trading using opposite Eureka Design and Unique Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eureka Design position performs unexpectedly, Unique 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 Unique Mining will offset losses from the drop in Unique Mining's long position.Eureka Design vs. Quality Houses Property | Eureka Design vs. The Erawan Group | Eureka Design vs. Jay Mart Public | Eureka Design vs. Airports of Thailand |
Unique Mining vs. Union Petrochemical Public | Unique Mining vs. Eureka Design Public | Unique Mining vs. The Erawan Group | Unique Mining vs. Jay Mart Public |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance |