Correlation Between Bald Eagle and Excellon Resources

Can any of the company-specific risk be diversified away by investing in both Bald Eagle 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 Bald Eagle and Excellon Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bald Eagle Gold and Excellon Resources, you can compare the effects of market volatilities on Bald Eagle 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 Bald Eagle with a short position of Excellon Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bald Eagle and Excellon Resources.

Diversification Opportunities for Bald Eagle and Excellon Resources

0.0

Correlation Coefficient

Bald Eagle  Excellon Resources

Pay attention - limited upside

The 3 months correlation between Bald and Excellon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bald Eagle Gold and Excellon Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Excellon Resources and Bald Eagle 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 Bald Eagle Gold 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 Bald Eagle i.e., Bald Eagle and Excellon Resources go up and down completely randomly.

Pair Corralation between Bald Eagle and Excellon Resources

If you would invest  37.00  in Bald Eagle Gold on December 29, 2024 and sell it today you would earn a total of  6.00  from holding Bald Eagle Gold or generate 16.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Bald Eagle Gold  vs.  Excellon Resources

Bald Eagle Gold

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bald Eagle Gold are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Bald Eagle reported solid returns over the last few months and may actually be approaching a breakup point.

Excellon Resources

Risk-Adjusted Performance

Very Weak

Over the last 90 days Excellon Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Excellon Resources is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Bald Eagle and Excellon Resources

The main advantage of trading using opposite Bald Eagle and Excellon Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bald Eagle 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.

The idea behind Bald Eagle Gold and Excellon Resources pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.