Correlation Between Excelsior Mining and Canadian Apartment
Can any of the company-specific risk be diversified away by investing in both Excelsior Mining and Canadian Apartment 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 Canadian Apartment 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 Canadian Apartment Properties, you can compare the effects of market volatilities on Excelsior Mining and Canadian Apartment 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 Canadian Apartment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excelsior Mining and Canadian Apartment.
Diversification Opportunities for Excelsior Mining and Canadian Apartment
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Excelsior and Canadian is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Excelsior Mining Corp and Canadian Apartment Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Apartment 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 Canadian Apartment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian Apartment has no effect on the direction of Excelsior Mining i.e., Excelsior Mining and Canadian Apartment go up and down completely randomly.
Pair Corralation between Excelsior Mining and Canadian Apartment
Assuming the 90 days trading horizon Excelsior Mining Corp is expected to under-perform the Canadian Apartment. In addition to that, Excelsior Mining is 6.15 times more volatile than Canadian Apartment Properties. It trades about -0.07 of its total potential returns per unit of risk. Canadian Apartment Properties is currently generating about -0.32 per unit of volatility. If you would invest 4,306 in Canadian Apartment Properties on November 5, 2024 and sell it today you would lose (255.00) from holding Canadian Apartment Properties or give up 5.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 42.86% |
| Values | Daily Returns |
Excelsior Mining Corp vs. Canadian Apartment Properties
Performance |
| Timeline |
| Excelsior Mining Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Canadian Apartment |
Excelsior Mining and Canadian Apartment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Excelsior Mining and Canadian Apartment
The main advantage of trading using opposite Excelsior Mining and Canadian Apartment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excelsior Mining position performs unexpectedly, Canadian Apartment 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 Canadian Apartment will offset losses from the drop in Canadian Apartment's long position.| Excelsior Mining vs. Questerre Energy | Excelsior Mining vs. Ivanhoe Mines | Excelsior Mining vs. Eastern Platinum Limited | Excelsior Mining vs. iShares Canadian HYBrid |
| Canadian Apartment vs. Allied Properties Real | Canadian Apartment vs. Granite Real Estate | Canadian Apartment vs. Boardwalk Real Estate | Canadian Apartment 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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