Correlation Between Excellon Resources and Dividend
Can any of the company-specific risk be diversified away by investing in both Excellon Resources and Dividend 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 Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Excellon Resources and Dividend 15 Split, you can compare the effects of market volatilities on Excellon Resources and Dividend 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 Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excellon Resources and Dividend.
Diversification Opportunities for Excellon Resources and Dividend
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Excellon and Dividend is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Excellon Resources and Dividend 15 Split in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dividend 15 Split 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 Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dividend 15 Split has no effect on the direction of Excellon Resources i.e., Excellon Resources and Dividend go up and down completely randomly.
Pair Corralation between Excellon Resources and Dividend
Assuming the 90 days trading horizon Excellon Resources is expected to generate 20.6 times more return on investment than Dividend. However, Excellon Resources is 20.6 times more volatile than Dividend 15 Split. It trades about 0.13 of its potential returns per unit of risk. Dividend 15 Split is currently generating about 0.09 per unit of risk. If you would invest 9.00 in Excellon Resources on October 24, 2024 and sell it today you would earn a total of 1.00 from holding Excellon Resources or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Excellon Resources vs. Dividend 15 Split
Performance |
| Timeline |
| Excellon Resources |
| Dividend 15 Split |
Excellon Resources and Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Excellon Resources and Dividend
The main advantage of trading using opposite Excellon Resources and Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excellon Resources position performs unexpectedly, Dividend 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 Dividend will offset losses from the drop in Dividend'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 |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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