Correlation Between ExGen Resources and Gunpoint Exploration
Can any of the company-specific risk be diversified away by investing in both ExGen Resources and Gunpoint Exploration 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 Gunpoint Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ExGen Resources and Gunpoint Exploration, you can compare the effects of market volatilities on ExGen Resources and Gunpoint Exploration 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 Gunpoint Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of ExGen Resources and Gunpoint Exploration.
Diversification Opportunities for ExGen Resources and Gunpoint Exploration
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between ExGen and Gunpoint is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding ExGen Resources and Gunpoint Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gunpoint Exploration 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 Gunpoint Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gunpoint Exploration has no effect on the direction of ExGen Resources i.e., ExGen Resources and Gunpoint Exploration go up and down completely randomly.
Pair Corralation between ExGen Resources and Gunpoint Exploration
Assuming the 90 days horizon ExGen Resources is expected to generate 2.7 times more return on investment than Gunpoint Exploration. However, ExGen Resources is 2.7 times more volatile than Gunpoint Exploration. It trades about 0.06 of its potential returns per unit of risk. Gunpoint Exploration is currently generating about 0.02 per unit of risk. If you would invest 7.00 in ExGen Resources on September 1, 2024 and sell it today you would earn a total of 2.00 from holding ExGen Resources or generate 28.57% 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. Gunpoint Exploration
Performance |
| Timeline |
| ExGen Resources |
| Gunpoint Exploration |
ExGen Resources and Gunpoint Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ExGen Resources and Gunpoint Exploration
The main advantage of trading using opposite ExGen Resources and Gunpoint Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ExGen Resources position performs unexpectedly, Gunpoint Exploration 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 Gunpoint Exploration will offset losses from the drop in Gunpoint Exploration's long position.| ExGen Resources vs. Sparx Technology | ExGen Resources vs. Osisko Metals | ExGen Resources vs. Solution Financial | ExGen Resources vs. Richelieu Hardware |
| Gunpoint Exploration vs. 2028 Investment Grade | Gunpoint Exploration vs. InPlay Oil Corp | Gunpoint Exploration vs. Verizon Communications CDR | Gunpoint Exploration vs. Canlan Ice Sports |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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