Correlation Between Eurasia Mining and Applied Materials

Can any of the company-specific risk be diversified away by investing in both Eurasia Mining and Applied Materials 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 Eurasia Mining and Applied Materials into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Eurasia Mining Plc and Applied Materials, you can compare the effects of market volatilities on Eurasia Mining and Applied Materials 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 Eurasia Mining with a short position of Applied Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurasia Mining and Applied Materials.

Diversification Opportunities for Eurasia Mining and Applied Materials

0.0

Correlation Coefficient

Eurasia Mining  Applied Materials

Pay attention - limited upside

The 3 months correlation between Eurasia and Applied is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eurasia Mining Plc and Applied Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Applied Materials and Eurasia 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 Eurasia Mining Plc are associated (or correlated) with Applied Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Applied Materials has no effect on the direction of Eurasia Mining i.e., Eurasia Mining and Applied Materials go up and down completely randomly.

Pair Corralation between Eurasia Mining and Applied Materials

If you would invest  12,509  in Applied Materials on April 23, 2025 and sell it today you would earn a total of  4,049  from holding Applied Materials or generate 32.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Eurasia Mining Plc  vs.  Applied Materials

Eurasia Mining Plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Eurasia Mining Plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Eurasia Mining is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Applied Materials

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Applied Materials are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Applied Materials reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Eurasia Mining and Applied Materials

The main advantage of trading using opposite Eurasia Mining and Applied Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurasia Mining position performs unexpectedly, Applied Materials 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 Applied Materials will offset losses from the drop in Applied Materials' long position.

The idea behind Eurasia Mining Plc and Applied Materials 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 Transaction History module to view history of all your transactions and understand their impact on performance.