Correlation Between Minco Silver and Excellon Resources
Can any of the company-specific risk be diversified away by investing in both Minco Silver and Excellon Resources 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 Minco Silver and Excellon Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Minco Silver and Excellon Resources, you can compare the effects of market volatilities on Minco Silver and Excellon Resources 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 Minco Silver with a short position of Excellon Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minco Silver and Excellon Resources.
Diversification Opportunities for Minco Silver and Excellon Resources
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Minco and Excellon is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Minco Silver and Excellon Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Excellon Resources and Minco Silver 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 Minco Silver are associated (or correlated) with Excellon Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Excellon Resources has no effect on the direction of Minco Silver i.e., Minco Silver and Excellon Resources go up and down completely randomly.
Pair Corralation between Minco Silver and Excellon Resources
Assuming the 90 days trading horizon Minco Silver is expected to generate 0.67 times more return on investment than Excellon Resources. However, Minco Silver is 1.48 times less risky than Excellon Resources. It trades about 0.02 of its potential returns per unit of risk. Excellon Resources is currently generating about 0.0 per unit of risk. If you would invest 20.00 in Minco Silver on August 24, 2024 and sell it today you would lose (2.00) from holding Minco Silver or give up 10.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Minco Silver vs. Excellon Resources
Performance |
| Timeline |
| Minco Silver |
| Excellon Resources |
Minco Silver and Excellon Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minco Silver and Excellon Resources
The main advantage of trading using opposite Minco Silver and Excellon Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minco Silver position performs unexpectedly, Excellon Resources 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 Excellon Resources will offset losses from the drop in Excellon Resources' long position.| Minco Silver vs. Excellon Resources | Minco Silver vs. IMPACT Silver Corp | Minco Silver vs. Almaden Minerals | Minco Silver vs. Bear Creek Mining |
| Excellon Resources vs. Minco Silver | Excellon Resources vs. Americas Silver Corp | Excellon Resources vs. IMPACT Silver Corp | Excellon Resources vs. Dolly Varden Silver |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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