Correlation Between Excelsior Mining and Allied Properties
Can any of the company-specific risk be diversified away by investing in both Excelsior Mining and Allied Properties 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 Excelsior Mining and Allied Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Excelsior Mining Corp and Allied Properties Real, you can compare the effects of market volatilities on Excelsior Mining and Allied Properties 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 Excelsior Mining with a short position of Allied Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excelsior Mining and Allied Properties.
Diversification Opportunities for Excelsior Mining and Allied Properties
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Excelsior and Allied is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Excelsior Mining Corp and Allied Properties Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allied Properties Real and Excelsior Mining 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 Excelsior Mining Corp are associated (or correlated) with Allied Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allied Properties Real has no effect on the direction of Excelsior Mining i.e., Excelsior Mining and Allied Properties go up and down completely randomly.
Pair Corralation between Excelsior Mining and Allied Properties
Assuming the 90 days trading horizon Excelsior Mining Corp is expected to generate 4.88 times more return on investment than Allied Properties. However, Excelsior Mining is 4.88 times more volatile than Allied Properties Real. It trades about 0.02 of its potential returns per unit of risk. Allied Properties Real is currently generating about 0.08 per unit of risk. If you would invest 20.00 in Excelsior Mining Corp on November 1, 2024 and sell it today you would earn a total of 0.00 from holding Excelsior Mining Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 54.55% |
| Values | Daily Returns |
Excelsior Mining Corp vs. Allied Properties Real
Performance |
| Timeline |
| Excelsior Mining Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Allied Properties Real |
Excelsior Mining and Allied Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Excelsior Mining and Allied Properties
The main advantage of trading using opposite Excelsior Mining and Allied Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excelsior Mining position performs unexpectedly, Allied Properties 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 Allied Properties will offset losses from the drop in Allied Properties' long position.| Excelsior Mining vs. RTG Mining | Excelsior Mining vs. Nubian Resources | Excelsior Mining vs. Royal Road Minerals |
| Allied Properties vs. Canadian Apartment Properties | Allied Properties vs. Granite Real Estate | Allied Properties vs. Choice Properties Real | Allied Properties vs. HR Real Estate |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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