Correlation Between Evolution Mining and Woolworths Group
Can any of the company-specific risk be diversified away by investing in both Evolution Mining and Woolworths Group 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 Evolution Mining and Woolworths Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolution Mining and Woolworths Group, you can compare the effects of market volatilities on Evolution Mining and Woolworths Group 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 Evolution Mining with a short position of Woolworths Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolution Mining and Woolworths Group.
Diversification Opportunities for Evolution Mining and Woolworths Group
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Evolution and Woolworths is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Evolution Mining and Woolworths Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Woolworths Group and Evolution 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 Evolution Mining are associated (or correlated) with Woolworths Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Woolworths Group has no effect on the direction of Evolution Mining i.e., Evolution Mining and Woolworths Group go up and down completely randomly.
Pair Corralation between Evolution Mining and Woolworths Group
Assuming the 90 days trading horizon Evolution Mining is expected to generate 3.3 times more return on investment than Woolworths Group. However, Evolution Mining is 3.3 times more volatile than Woolworths Group. It trades about 0.17 of its potential returns per unit of risk. Woolworths Group is currently generating about 0.1 per unit of risk. If you would invest 893.00 in Evolution Mining on September 8, 2025 and sell it today you would earn a total of 307.00 from holding Evolution Mining or generate 34.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolution Mining vs. Woolworths Group
Performance |
| Timeline |
| Evolution Mining |
| Woolworths Group |
Evolution Mining and Woolworths Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolution Mining and Woolworths Group
The main advantage of trading using opposite Evolution Mining and Woolworths Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolution Mining position performs unexpectedly, Woolworths Group 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 Woolworths Group will offset losses from the drop in Woolworths Group's long position.| Evolution Mining vs. Richmond Vanadium Technology | Evolution Mining vs. Sports Entertainment Group | Evolution Mining vs. Beam Communications Holdings | Evolution Mining vs. Ainsworth Game Technology |
| Woolworths Group vs. Retail Food Group | Woolworths Group vs. Australian United Investment | Woolworths Group vs. Flagship Investments | Woolworths Group vs. MFF Capital Investments |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |