Correlation Between Mayfair Gold and Eni SPA

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Mayfair Gold and Eni SPA 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 Mayfair Gold and Eni SPA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mayfair Gold Corp and Eni SpA ADR, you can compare the effects of market volatilities on Mayfair Gold and Eni SPA 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 Mayfair Gold with a short position of Eni SPA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mayfair Gold and Eni SPA.

Diversification Opportunities for Mayfair Gold and Eni SPA

0.39
  Correlation Coefficient

Weak diversification

The 3 months correlation between Mayfair and Eni is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Mayfair Gold Corp and Eni SpA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eni SpA ADR and Mayfair Gold 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 Mayfair Gold Corp are associated (or correlated) with Eni SPA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eni SpA ADR has no effect on the direction of Mayfair Gold i.e., Mayfair Gold and Eni SPA go up and down completely randomly.

Pair Corralation between Mayfair Gold and Eni SPA

Assuming the 90 days horizon Mayfair Gold is expected to generate 1.12 times less return on investment than Eni SPA. In addition to that, Mayfair Gold is 2.38 times more volatile than Eni SpA ADR. It trades about 0.04 of its total potential returns per unit of risk. Eni SpA ADR is currently generating about 0.11 per unit of volatility. If you would invest  2,648  in Eni SpA ADR on September 5, 2025 and sell it today you would earn a total of  1,179  from holding Eni SpA ADR or generate 44.52% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy99.2%
ValuesDaily Returns

Mayfair Gold Corp  vs.  Eni SpA ADR

 Performance 
       Timeline  
Mayfair Gold Corp 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Mayfair Gold Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Mayfair Gold reported solid returns over the last few months and may actually be approaching a breakup point.
Eni SpA ADR 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Eni SpA ADR are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile technical and fundamental indicators, Eni SPA exhibited solid returns over the last few months and may actually be approaching a breakup point.

Mayfair Gold and Eni SPA Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Mayfair Gold and Eni SPA

The main advantage of trading using opposite Mayfair Gold and Eni SPA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mayfair Gold position performs unexpectedly, Eni SPA 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 Eni SPA will offset losses from the drop in Eni SPA's long position.
The idea behind Mayfair Gold Corp and Eni SpA ADR 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.
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

Transaction History
View history of all your transactions and understand their impact on performance
Global Correlations
Find global opportunities by holding instruments from different markets
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios