Correlation Between IMPACT Silver and Excellon Resources

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

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

Diversification Opportunities for IMPACT Silver and Excellon Resources

0.0

Correlation Coefficient

IMPACT Silver  Excellon Resources

Pay attention - limited upside

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

Pair Corralation between IMPACT Silver and Excellon Resources

If you would invest  14.00  in IMPACT Silver Corp on December 30, 2024 and sell it today you would earn a total of  0.00  from holding IMPACT Silver Corp 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

IMPACT Silver Corp  vs.  Excellon Resources

IMPACT Silver Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in IMPACT Silver Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, IMPACT Silver may actually be approaching a critical reversion point that can send shares even higher in April 2025.

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

Pair Trading with IMPACT Silver and Excellon Resources

The main advantage of trading using opposite IMPACT Silver and Excellon Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMPACT Silver 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 IMPACT Silver Corp 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.