Correlation Between Excelsior Mining and Sun Summit
Can any of the company-specific risk be diversified away by investing in both Excelsior Mining and Sun Summit 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 Sun Summit 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 Sun Summit Minerals, you can compare the effects of market volatilities on Excelsior Mining and Sun Summit 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 Sun Summit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excelsior Mining and Sun Summit.
Diversification Opportunities for Excelsior Mining and Sun Summit
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Excelsior and Sun is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Excelsior Mining Corp and Sun Summit Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Summit Minerals 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 Sun Summit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Summit Minerals has no effect on the direction of Excelsior Mining i.e., Excelsior Mining and Sun Summit go up and down completely randomly.
Pair Corralation between Excelsior Mining and Sun Summit
Assuming the 90 days trading horizon Excelsior Mining is expected to generate 1.03 times less return on investment than Sun Summit. But when comparing it to its historical volatility, Excelsior Mining Corp is 1.57 times less risky than Sun Summit. It trades about 0.03 of its potential returns per unit of risk. Sun Summit Minerals is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 39.00 in Sun Summit Minerals on August 30, 2024 and sell it today you would lose (27.00) from holding Sun Summit Minerals or give up 69.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Excelsior Mining Corp vs. Sun Summit Minerals
Performance |
| Timeline |
| Excelsior Mining Corp |
| Sun Summit Minerals |
Excelsior Mining and Sun Summit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Excelsior Mining and Sun Summit
The main advantage of trading using opposite Excelsior Mining and Sun Summit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excelsior Mining position performs unexpectedly, Sun Summit 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 Sun Summit will offset losses from the drop in Sun Summit's long position.| Excelsior Mining vs. RTG Mining | Excelsior Mining vs. Nubian Resources | Excelsior Mining vs. Fremont Gold | Excelsior Mining vs. Royal Road Minerals |
| Sun Summit vs. First Majestic Silver | Sun Summit vs. Ivanhoe Energy | Sun Summit vs. Orezone Gold Corp | Sun Summit vs. Faraday Copper 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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