Correlation Between Exco Technologies and Silver Bear
Can any of the company-specific risk be diversified away by investing in both Exco Technologies and Silver Bear 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 Exco Technologies and Silver Bear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exco Technologies Limited and Silver Bear Resources, you can compare the effects of market volatilities on Exco Technologies and Silver Bear 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 Exco Technologies with a short position of Silver Bear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exco Technologies and Silver Bear.
Diversification Opportunities for Exco Technologies and Silver Bear
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Exco and Silver is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Exco Technologies Limited and Silver Bear Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver Bear Resources and Exco Technologies 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 Exco Technologies Limited are associated (or correlated) with Silver Bear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver Bear Resources has no effect on the direction of Exco Technologies i.e., Exco Technologies and Silver Bear go up and down completely randomly.
Pair Corralation between Exco Technologies and Silver Bear
If you would invest 739.00 in Exco Technologies Limited on September 4, 2024 and sell it today you would earn a total of 96.00 from holding Exco Technologies Limited or generate 12.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Exco Technologies Limited vs. Silver Bear Resources
Performance |
| Timeline |
| Exco Technologies |
| Silver Bear Resources |
Exco Technologies and Silver Bear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exco Technologies and Silver Bear
The main advantage of trading using opposite Exco Technologies and Silver Bear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exco Technologies position performs unexpectedly, Silver Bear 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 Silver Bear will offset losses from the drop in Silver Bear's long position.| Exco Technologies vs. Transcontinental | Exco Technologies vs. Methanex | Exco Technologies vs. Stella Jones | Exco Technologies vs. High Liner Foods |
| Silver Bear vs. First Majestic Silver | Silver Bear vs. Ivanhoe Energy | Silver Bear vs. Orezone Gold Corp | Silver Bear 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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