Correlation Between ExGen Resources and Inventus Mining
Can any of the company-specific risk be diversified away by investing in both ExGen Resources and Inventus Mining 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 Inventus Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ExGen Resources and Inventus Mining Corp, you can compare the effects of market volatilities on ExGen Resources and Inventus Mining 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 Inventus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of ExGen Resources and Inventus Mining.
Diversification Opportunities for ExGen Resources and Inventus Mining
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ExGen and Inventus is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding ExGen Resources and Inventus Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inventus Mining 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 Inventus Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inventus Mining Corp has no effect on the direction of ExGen Resources i.e., ExGen Resources and Inventus Mining go up and down completely randomly.
Pair Corralation between ExGen Resources and Inventus Mining
Assuming the 90 days horizon ExGen Resources is expected to under-perform the Inventus Mining. In addition to that, ExGen Resources is 1.58 times more volatile than Inventus Mining Corp. It trades about -0.02 of its total potential returns per unit of risk. Inventus Mining Corp is currently generating about 0.12 per unit of volatility. If you would invest 9.00 in Inventus Mining Corp on November 27, 2024 and sell it today you would earn a total of 1.00 from holding Inventus Mining Corp or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ExGen Resources vs. Inventus Mining Corp
Performance |
| Timeline |
| ExGen Resources |
| Inventus Mining Corp |
ExGen Resources and Inventus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ExGen Resources and Inventus Mining
The main advantage of trading using opposite ExGen Resources and Inventus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ExGen Resources position performs unexpectedly, Inventus Mining 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 Inventus Mining will offset losses from the drop in Inventus Mining'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, |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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