Correlation Between Eagle Mountain and CSP
Can any of the company-specific risk be diversified away by investing in both Eagle Mountain and CSP 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 Eagle Mountain and CSP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Mountain Mining and CSP Inc, you can compare the effects of market volatilities on Eagle Mountain and CSP 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 Eagle Mountain with a short position of CSP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Mountain and CSP.
Diversification Opportunities for Eagle Mountain and CSP
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eagle and CSP is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Mountain Mining and CSP Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSP Inc and Eagle Mountain 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 Eagle Mountain Mining are associated (or correlated) with CSP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSP Inc has no effect on the direction of Eagle Mountain i.e., Eagle Mountain and CSP go up and down completely randomly.
Pair Corralation between Eagle Mountain and CSP
Assuming the 90 days horizon Eagle Mountain Mining is expected to generate 30.26 times more return on investment than CSP. However, Eagle Mountain is 30.26 times more volatile than CSP Inc. It trades about 0.11 of its potential returns per unit of risk. CSP Inc is currently generating about -0.11 per unit of risk. If you would invest 1.33 in Eagle Mountain Mining on April 25, 2025 and sell it today you would earn a total of 0.00 from holding Eagle Mountain Mining or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.83% |
| Values | Daily Returns |
Eagle Mountain Mining vs. CSP Inc
Performance |
| Timeline |
| Eagle Mountain Mining |
| CSP Inc |
Eagle Mountain and CSP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Mountain and CSP
The main advantage of trading using opposite Eagle Mountain and CSP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Mountain position performs unexpectedly, CSP 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 CSP will offset losses from the drop in CSP's long position.| Eagle Mountain vs. Constellation Brands Class | Eagle Mountain vs. Steven Madden | Eagle Mountain vs. Acme United | Eagle Mountain vs. Fomento Economico Mexicano |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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