Correlation Between Silver One and Excellon Resources

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

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

Diversification Opportunities for Silver One and Excellon Resources

0.0

Correlation Coefficient

Silver One  Excellon Resources

Pay attention - limited upside

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

Pair Corralation between Silver One and Excellon Resources

If you would invest  13.00  in Silver One Resources on December 30, 2024 and sell it today you would earn a total of  5.00  from holding Silver One Resources or generate 38.46% return on investment over 90 days.

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

Silver One Resources  vs.  Excellon Resources

Silver One Resources

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Silver One Resources are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Silver One 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 newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Silver One and Excellon Resources

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

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.