Correlation Between Excelsior Mining and Information Services
Can any of the company-specific risk be diversified away by investing in both Excelsior Mining and Information Services 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 Information Services 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 Information Services, you can compare the effects of market volatilities on Excelsior Mining and Information Services 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 Information Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excelsior Mining and Information Services.
Diversification Opportunities for Excelsior Mining and Information Services
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Excelsior and Information is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Excelsior Mining Corp and Information Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Information Services 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 Information Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Information Services has no effect on the direction of Excelsior Mining i.e., Excelsior Mining and Information Services go up and down completely randomly.
Pair Corralation between Excelsior Mining and Information Services
Assuming the 90 days trading horizon Excelsior Mining Corp is expected to generate 5.19 times more return on investment than Information Services. However, Excelsior Mining is 5.19 times more volatile than Information Services. It trades about 0.12 of its potential returns per unit of risk. Information Services is currently generating about 0.11 per unit of risk. If you would invest 18.00 in Excelsior Mining Corp on October 20, 2024 and sell it today you would earn a total of 2.00 from holding Excelsior Mining Corp or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
Excelsior Mining Corp vs. Information Services
Performance |
| Timeline |
| Excelsior Mining Corp |
| Information Services |
Excelsior Mining and Information Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Excelsior Mining and Information Services
The main advantage of trading using opposite Excelsior Mining and Information Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excelsior Mining position performs unexpectedly, Information Services 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 Information Services will offset losses from the drop in Information Services' long position.| Excelsior Mining vs. RTG Mining | Excelsior Mining vs. Nubian Resources | Excelsior Mining vs. Royal Road Minerals |
| Information Services vs. Vizsla Silver Corp | Information Services vs. Forsys Metals Corp | Information Services vs. Medical Facilities | Information Services vs. Dream Office Real |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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