Correlation Between Applied Materials, and Euro Sun
Can any of the company-specific risk be diversified away by investing in both Applied Materials, and Euro Sun 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 Applied Materials, and Euro Sun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied Materials, and Euro Sun Mining, you can compare the effects of market volatilities on Applied Materials, and Euro Sun 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 Applied Materials, with a short position of Euro Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Materials, and Euro Sun.
Diversification Opportunities for Applied Materials, and Euro Sun
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Applied and Euro is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Applied Materials, and Euro Sun Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Euro Sun Mining and Applied Materials, 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 Applied Materials, are associated (or correlated) with Euro Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Euro Sun Mining has no effect on the direction of Applied Materials, i.e., Applied Materials, and Euro Sun go up and down completely randomly.
Pair Corralation between Applied Materials, and Euro Sun
Assuming the 90 days trading horizon Applied Materials, is expected to generate 0.57 times more return on investment than Euro Sun. However, Applied Materials, is 1.75 times less risky than Euro Sun. It trades about 0.27 of its potential returns per unit of risk. Euro Sun Mining is currently generating about 0.13 per unit of risk. If you would invest 1,928 in Applied Materials, on September 11, 2025 and sell it today you would earn a total of 1,090 from holding Applied Materials, or generate 56.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Applied Materials, vs. Euro Sun Mining
Performance |
| Timeline |
| Applied Materials, |
| Euro Sun Mining |
Applied Materials, and Euro Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Materials, and Euro Sun
The main advantage of trading using opposite Applied Materials, and Euro Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Materials, position performs unexpectedly, Euro Sun 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 Euro Sun will offset losses from the drop in Euro Sun's long position.| Applied Materials, vs. Russell Investments Global | Applied Materials, vs. Northstar Clean Technologies | Applied Materials, vs. A W FOOD | Applied Materials, vs. CVW CleanTech |
| Euro Sun vs. Scorpio Gold Corp | Euro Sun vs. Galway Metals | Euro Sun vs. Abcourt Mines | Euro Sun vs. Maple Gold Mines |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |