Correlation Between ExGen Resources and District Copper
Can any of the company-specific risk be diversified away by investing in both ExGen Resources and District Copper 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 ExGen Resources and District Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ExGen Resources and District Copper Corp, you can compare the effects of market volatilities on ExGen Resources and District Copper 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 ExGen Resources with a short position of District Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of ExGen Resources and District Copper.
Diversification Opportunities for ExGen Resources and District Copper
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between ExGen and District is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding ExGen Resources and District Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on District Copper Corp and ExGen Resources 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 ExGen Resources are associated (or correlated) with District Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of District Copper Corp has no effect on the direction of ExGen Resources i.e., ExGen Resources and District Copper go up and down completely randomly.
Pair Corralation between ExGen Resources and District Copper
Assuming the 90 days horizon ExGen Resources is expected to under-perform the District Copper. But the stock apears to be less risky and, when comparing its historical volatility, ExGen Resources is 1.55 times less risky than District Copper. The stock trades about -0.02 of its potential returns per unit of risk. The District Copper Corp is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 4.50 in District Copper Corp on November 27, 2024 and sell it today you would earn a total of 2.50 from holding District Copper Corp or generate 55.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ExGen Resources vs. District Copper Corp
Performance |
| Timeline |
| ExGen Resources |
| District Copper Corp |
ExGen Resources and District Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ExGen Resources and District Copper
The main advantage of trading using opposite ExGen Resources and District Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ExGen Resources position performs unexpectedly, District Copper 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 District Copper will offset losses from the drop in District Copper's long position.| ExGen Resources vs. Flow Beverage Corp | ExGen Resources vs. Renoworks Software | ExGen Resources vs. Farstarcap Investment Corp | ExGen Resources vs. Applied Materials, |
| District Copper vs. Hawkeye Gold and | District Copper vs. Black Mammoth Metals | District Copper vs. ExGen Resources | District Copper vs. Wildsky Resources |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |