Correlation Between Excelsior Mining and Canso Select
Can any of the company-specific risk be diversified away by investing in both Excelsior Mining and Canso Select 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 Canso Select 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 Canso Select Opportunities, you can compare the effects of market volatilities on Excelsior Mining and Canso Select 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 Canso Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excelsior Mining and Canso Select.
Diversification Opportunities for Excelsior Mining and Canso Select
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Excelsior and Canso is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Excelsior Mining Corp and Canso Select Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canso Select Opportu 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 Canso Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canso Select Opportu has no effect on the direction of Excelsior Mining i.e., Excelsior Mining and Canso Select go up and down completely randomly.
Pair Corralation between Excelsior Mining and Canso Select
Assuming the 90 days trading horizon Excelsior Mining Corp is expected to generate 2.13 times more return on investment than Canso Select. However, Excelsior Mining is 2.13 times more volatile than Canso Select Opportunities. It trades about 0.02 of its potential returns per unit of risk. Canso Select Opportunities is currently generating about -0.08 per unit of risk. If you would invest 20.00 in Excelsior Mining Corp on November 4, 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 Together |
| Strength | Very Weak |
| Accuracy | 47.62% |
| Values | Daily Returns |
Excelsior Mining Corp vs. Canso Select Opportunities
Performance |
| Timeline |
| Excelsior Mining Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Canso Select Opportu |
Excelsior Mining and Canso Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Excelsior Mining and Canso Select
The main advantage of trading using opposite Excelsior Mining and Canso Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excelsior Mining position performs unexpectedly, Canso Select 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 Canso Select will offset losses from the drop in Canso Select'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 |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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