Correlation Between CoinSmart Financial and Excelsior Mining

Can any of the company-specific risk be diversified away by investing in both CoinSmart Financial and Excelsior Mining 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 CoinSmart Financial and Excelsior Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for CoinSmart Financial and Excelsior Mining

0.0

Correlation Coefficient

CoinSmart Financial  Excelsior Mining

Pay attention - limited upside

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

Pair Corralation between CoinSmart Financial and Excelsior Mining

If you would invest  15.00  in Excelsior Mining Corp on October 24, 2024 and sell it today you would earn a total of  5.00  from holding Excelsior Mining Corp or generate 33.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	93.55%
Values	Daily Returns

CoinSmart Financial  vs.  Excelsior Mining Corp

CoinSmart Financial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CoinSmart Financial has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, CoinSmart Financial is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Excelsior Mining Corp

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Excelsior Mining Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Excelsior Mining displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CoinSmart Financial and Excelsior Mining

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

The idea behind CoinSmart Financial and Excelsior Mining 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.

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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.