Correlation Between Excellon Resources and Bald Eagle

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

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

Diversification Opportunities for Excellon Resources and Bald Eagle

0.0

Correlation Coefficient

Excellon Resources  Bald Eagle

Pay attention - limited upside

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

Pair Corralation between Excellon Resources and Bald Eagle

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

Excellon Resources  vs.  Bald Eagle Gold

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.

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.

Pair Trading with Excellon Resources and Bald Eagle

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

The idea behind Excellon Resources and Bald Eagle Gold 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.