Correlation Between Excellon Resources and Cineplex
Can any of the company-specific risk be diversified away by investing in both Excellon Resources and Cineplex 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 Excellon Resources and Cineplex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Excellon Resources and Cineplex, you can compare the effects of market volatilities on Excellon Resources and Cineplex 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 Excellon Resources with a short position of Cineplex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excellon Resources and Cineplex.
Diversification Opportunities for Excellon Resources and Cineplex
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Excellon and Cineplex is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Excellon Resources and Cineplex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cineplex and Excellon 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 Excellon Resources are associated (or correlated) with Cineplex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cineplex has no effect on the direction of Excellon Resources i.e., Excellon Resources and Cineplex go up and down completely randomly.
Pair Corralation between Excellon Resources and Cineplex
Assuming the 90 days trading horizon Excellon Resources is expected to under-perform the Cineplex. In addition to that, Excellon Resources is 3.35 times more volatile than Cineplex. It trades about -0.01 of its total potential returns per unit of risk. Cineplex is currently generating about 0.05 per unit of volatility. If you would invest 822.00 in Cineplex on September 12, 2024 and sell it today you would earn a total of 451.00 from holding Cineplex or generate 54.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Excellon Resources vs. Cineplex
Performance |
| Timeline |
| Excellon Resources |
| Cineplex |
Excellon Resources and Cineplex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Excellon Resources and Cineplex
The main advantage of trading using opposite Excellon Resources and Cineplex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excellon Resources position performs unexpectedly, Cineplex 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 Cineplex will offset losses from the drop in Cineplex's long position.| Excellon Resources vs. Minco Silver | Excellon Resources vs. Americas Silver Corp | Excellon Resources vs. IMPACT Silver Corp | Excellon Resources vs. Dolly Varden Silver |
| Cineplex vs. Air Canada | Cineplex vs. BlackBerry | Cineplex vs. Suncor Energy | Cineplex vs. Drone Delivery Canada |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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