Correlation Between Excellon Resources and TeraGo
Can any of the company-specific risk be diversified away by investing in both Excellon Resources and TeraGo 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 TeraGo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Excellon Resources and TeraGo Inc, you can compare the effects of market volatilities on Excellon Resources and TeraGo 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 TeraGo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excellon Resources and TeraGo.
Diversification Opportunities for Excellon Resources and TeraGo
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Excellon and TeraGo is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Excellon Resources and TeraGo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TeraGo Inc 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 TeraGo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TeraGo Inc has no effect on the direction of Excellon Resources i.e., Excellon Resources and TeraGo go up and down completely randomly.
Pair Corralation between Excellon Resources and TeraGo
Assuming the 90 days trading horizon Excellon Resources is expected to generate 3.04 times more return on investment than TeraGo. However, Excellon Resources is 3.04 times more volatile than TeraGo Inc. It trades about 0.27 of its potential returns per unit of risk. TeraGo Inc is currently generating about 0.3 per unit of risk. If you would invest 10.00 in Excellon Resources on November 27, 2024 and sell it today you would earn a total of 6.00 from holding Excellon Resources or generate 60.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Excellon Resources vs. TeraGo Inc
Performance |
| Timeline |
| Excellon Resources |
| TeraGo Inc |
Excellon Resources and TeraGo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Excellon Resources and TeraGo
The main advantage of trading using opposite Excellon Resources and TeraGo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excellon Resources position performs unexpectedly, TeraGo 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 TeraGo will offset losses from the drop in TeraGo'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 |
| TeraGo vs. Evertz Technologies Limited | TeraGo vs. Vecima Networks | TeraGo vs. EcoSynthetix | TeraGo vs. Baylin Technologies |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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