Correlation Between Excellon Resources and IMPACT Silver
Can any of the company-specific risk be diversified away by investing in both Excellon Resources and IMPACT Silver 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 IMPACT Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Excellon Resources and IMPACT Silver Corp, you can compare the effects of market volatilities on Excellon Resources and IMPACT Silver 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 IMPACT Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excellon Resources and IMPACT Silver.
Diversification Opportunities for Excellon Resources and IMPACT Silver
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Excellon and IMPACT is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Excellon Resources and IMPACT Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMPACT Silver Corp 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 IMPACT Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IMPACT Silver Corp has no effect on the direction of Excellon Resources i.e., Excellon Resources and IMPACT Silver go up and down completely randomly.
Pair Corralation between Excellon Resources and IMPACT Silver
Assuming the 90 days trading horizon Excellon Resources is expected to generate 1.43 times more return on investment than IMPACT Silver. However, Excellon Resources is 1.43 times more volatile than IMPACT Silver Corp. It trades about 0.04 of its potential returns per unit of risk. IMPACT Silver Corp is currently generating about 0.02 per unit of risk. If you would invest 10.00 in Excellon Resources on August 25, 2024 and sell it today you would lose (0.50) from holding Excellon Resources or give up 5.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Excellon Resources vs. IMPACT Silver Corp
Performance |
| Timeline |
| Excellon Resources |
| IMPACT Silver Corp |
Excellon Resources and IMPACT Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Excellon Resources and IMPACT Silver
The main advantage of trading using opposite Excellon Resources and IMPACT Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excellon Resources position performs unexpectedly, IMPACT Silver 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 IMPACT Silver will offset losses from the drop in IMPACT Silver'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 |
| IMPACT Silver vs. Bear Creek Mining | IMPACT Silver vs. Kootenay Silver | IMPACT Silver vs. Klondike Silver Corp | IMPACT Silver vs. Excellon 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |