Correlation Between Excellon Resources and IMPACT Silver

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

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

Diversification Opportunities for Excellon Resources and IMPACT Silver

0.0

Correlation Coefficient

Excellon Resources  IMPACT Silver

Pay attention - limited upside

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

Pair Corralation between Excellon Resources and IMPACT Silver

If you would invest (100.00) in Excellon Resources on November 20, 2024 and sell it today you would earn a total of  100.00  from holding Excellon Resources or generate -100.0% return on investment over 90 days.

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

Excellon Resources  vs.  IMPACT Silver Corp

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 current stock price disturbance, may contribute to mid-run losses for the stockholders.

IMPACT Silver Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days IMPACT Silver Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's essential indicators remain nearly stable which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Excellon Resources and IMPACT Silver

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

The idea behind Excellon Resources and IMPACT Silver Corp 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.