Correlation Between Excelsior Mining and Dividend
Can any of the company-specific risk be diversified away by investing in both Excelsior Mining and Dividend 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 Dividend 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 Dividend 15 Split, you can compare the effects of market volatilities on Excelsior Mining and Dividend 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 Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excelsior Mining and Dividend.
Diversification Opportunities for Excelsior Mining and Dividend
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Excelsior and Dividend is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Excelsior Mining Corp and Dividend 15 Split in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dividend 15 Split 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 Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dividend 15 Split has no effect on the direction of Excelsior Mining i.e., Excelsior Mining and Dividend go up and down completely randomly.
Pair Corralation between Excelsior Mining and Dividend
Assuming the 90 days trading horizon Excelsior Mining Corp is expected to generate 21.21 times more return on investment than Dividend. However, Excelsior Mining is 21.21 times more volatile than Dividend 15 Split. It trades about 0.03 of its potential returns per unit of risk. Dividend 15 Split is currently generating about 0.16 per unit of risk. If you would invest 16.00 in Excelsior Mining Corp on September 13, 2024 and sell it today you would earn a total of 3.00 from holding Excelsior Mining Corp or generate 18.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Excelsior Mining Corp vs. Dividend 15 Split
Performance |
| Timeline |
| Excelsior Mining Corp |
| Dividend 15 Split |
Excelsior Mining and Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Excelsior Mining and Dividend
The main advantage of trading using opposite Excelsior Mining and Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excelsior Mining position performs unexpectedly, Dividend 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 Dividend will offset losses from the drop in Dividend's long position.| Excelsior Mining vs. First Majestic Silver | Excelsior Mining vs. Ivanhoe Energy | Excelsior Mining vs. Orezone Gold Corp | Excelsior Mining vs. Faraday Copper Corp |
| Dividend vs. Royal Helium | Dividend vs. Excelsior Mining Corp | Dividend vs. Vista Gold | Dividend vs. Intermap Technologies Corp |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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