Correlation Between Excelsior Mining and Andean Precious
Can any of the company-specific risk be diversified away by investing in both Excelsior Mining and Andean Precious 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 Andean Precious 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 Andean Precious Metals, you can compare the effects of market volatilities on Excelsior Mining and Andean Precious 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 Andean Precious. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excelsior Mining and Andean Precious.
Diversification Opportunities for Excelsior Mining and Andean Precious
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Excelsior and Andean is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Excelsior Mining Corp and Andean Precious Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andean Precious Metals 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 Andean Precious. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andean Precious Metals has no effect on the direction of Excelsior Mining i.e., Excelsior Mining and Andean Precious go up and down completely randomly.
Pair Corralation between Excelsior Mining and Andean Precious
Assuming the 90 days trading horizon Excelsior Mining Corp is expected to under-perform the Andean Precious. In addition to that, Excelsior Mining is 1.37 times more volatile than Andean Precious Metals. It trades about -0.07 of its total potential returns per unit of risk. Andean Precious Metals is currently generating about 0.36 per unit of volatility. If you would invest 117.00 in Andean Precious Metals on November 7, 2024 and sell it today you would earn a total of 41.00 from holding Andean Precious Metals or generate 35.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 40.91% |
| Values | Daily Returns |
Excelsior Mining Corp vs. Andean Precious Metals
Performance |
| Timeline |
| Excelsior Mining Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Andean Precious Metals |
Excelsior Mining and Andean Precious Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Excelsior Mining and Andean Precious
The main advantage of trading using opposite Excelsior Mining and Andean Precious positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excelsior Mining position performs unexpectedly, Andean Precious 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 Andean Precious will offset losses from the drop in Andean Precious' long position.| Excelsior Mining vs. RTG Mining | Excelsior Mining vs. Nubian Resources | Excelsior Mining vs. Royal Road Minerals |
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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