Correlation Between Excelsior Mining and Bewhere Holdings
Can any of the company-specific risk be diversified away by investing in both Excelsior Mining and Bewhere Holdings 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 Bewhere Holdings 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 Bewhere Holdings, you can compare the effects of market volatilities on Excelsior Mining and Bewhere Holdings 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 Bewhere Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excelsior Mining and Bewhere Holdings.
Diversification Opportunities for Excelsior Mining and Bewhere Holdings
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Excelsior and Bewhere is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Excelsior Mining Corp and Bewhere Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bewhere Holdings 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 Bewhere Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bewhere Holdings has no effect on the direction of Excelsior Mining i.e., Excelsior Mining and Bewhere Holdings go up and down completely randomly.
Pair Corralation between Excelsior Mining and Bewhere Holdings
Assuming the 90 days trading horizon Excelsior Mining Corp is expected to under-perform the Bewhere Holdings. In addition to that, Excelsior Mining is 2.61 times more volatile than Bewhere Holdings. It trades about -0.08 of its total potential returns per unit of risk. Bewhere Holdings is currently generating about -0.02 per unit of volatility. If you would invest 70.00 in Bewhere Holdings on November 9, 2024 and sell it today you would lose (1.00) from holding Bewhere Holdings or give up 1.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.82% |
| Values | Daily Returns |
Excelsior Mining Corp vs. Bewhere Holdings
Performance |
| Timeline |
| Excelsior Mining Corp |
Risk-Adjusted Performance
OK
Weak | Strong |
| Bewhere Holdings |
Excelsior Mining and Bewhere Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Excelsior Mining and Bewhere Holdings
The main advantage of trading using opposite Excelsior Mining and Bewhere Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excelsior Mining position performs unexpectedly, Bewhere Holdings 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 Bewhere Holdings will offset losses from the drop in Bewhere Holdings' long position.| Excelsior Mining vs. RTG Mining | Excelsior Mining vs. Nubian Resources | Excelsior Mining vs. Royal Road Minerals |
| Bewhere Holdings vs. Gatekeeper Systems | Bewhere Holdings vs. Reliq Health Technologies | Bewhere Holdings vs. AirIQ Inc | Bewhere Holdings vs. AnalytixInsight |
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.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |