Correlation Between Excellon Resources and Enbridge Cumulative

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

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

Diversification Opportunities for Excellon Resources and Enbridge Cumulative

0.0

Correlation Coefficient

Excellon Resources  Enbridge Cumulative

Pay attention - limited upside

The 3 months correlation between Excellon and Enbridge is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Excellon Resources and Enbridge Cumulative Red in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge Cumulative Red and Excellon Resources 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 Excellon Resources are associated (or correlated) with Enbridge Cumulative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enbridge Cumulative Red has no effect on the direction of Excellon Resources i.e., Excellon Resources and Enbridge Cumulative go up and down completely randomly.

Pair Corralation between Excellon Resources and Enbridge Cumulative

If you would invest  10.00  in Excellon Resources on October 25, 2024 and sell it today you would earn a total of  0.00  from holding Excellon Resources or generate 0.0% return on investment over 90 days.

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

Excellon Resources  vs.  Enbridge Cumulative Red

Excellon Resources

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Excellon Resources are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Excellon Resources may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Enbridge Cumulative Red

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days Enbridge Cumulative Red has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Enbridge Cumulative is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Excellon Resources and Enbridge Cumulative

The main advantage of trading using opposite Excellon Resources and Enbridge Cumulative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excellon Resources position performs unexpectedly, Enbridge Cumulative 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 Enbridge Cumulative will offset losses from the drop in Enbridge Cumulative's long position.

The idea behind Excellon Resources and Enbridge Cumulative Red 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.

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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.