Correlation Between Excelsior Mining and Polaris Infrastructure
Can any of the company-specific risk be diversified away by investing in both Excelsior Mining and Polaris Infrastructure 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 Polaris Infrastructure 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 Polaris Infrastructure, you can compare the effects of market volatilities on Excelsior Mining and Polaris Infrastructure 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 Polaris Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excelsior Mining and Polaris Infrastructure.
Diversification Opportunities for Excelsior Mining and Polaris Infrastructure
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Excelsior and Polaris is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Excelsior Mining Corp and Polaris Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polaris Infrastructure 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 Polaris Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polaris Infrastructure has no effect on the direction of Excelsior Mining i.e., Excelsior Mining and Polaris Infrastructure go up and down completely randomly.
Pair Corralation between Excelsior Mining and Polaris Infrastructure
Assuming the 90 days trading horizon Excelsior Mining Corp is expected to generate 6.52 times more return on investment than Polaris Infrastructure. However, Excelsior Mining is 6.52 times more volatile than Polaris Infrastructure. It trades about 0.02 of its potential returns per unit of risk. Polaris Infrastructure is currently generating about -0.27 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 | Weak |
| Accuracy | 45.45% |
| Values | Daily Returns |
Excelsior Mining Corp vs. Polaris Infrastructure
Performance |
| Timeline |
| Excelsior Mining Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Polaris Infrastructure |
Excelsior Mining and Polaris Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Excelsior Mining and Polaris Infrastructure
The main advantage of trading using opposite Excelsior Mining and Polaris Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excelsior Mining position performs unexpectedly, Polaris Infrastructure 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 Polaris Infrastructure will offset losses from the drop in Polaris Infrastructure'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 |
| Polaris Infrastructure vs. Innergex Renewable Energy | Polaris Infrastructure vs. Boralex | Polaris Infrastructure vs. Northland Power |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Global Correlations Find global opportunities by holding instruments from different markets |