Correlation Between Talisman Mining and IXUP

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

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

Diversification Opportunities for Talisman Mining and IXUP

0.46

Correlation Coefficient

Talisman Mining  IXUP

Very weak diversification

The 3 months correlation between Talisman and IXUP is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Talisman Mining and IXUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IXUP and Talisman Mining 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 Talisman Mining are associated (or correlated) with IXUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IXUP has no effect on the direction of Talisman Mining i.e., Talisman Mining and IXUP go up and down completely randomly.

Pair Corralation between Talisman Mining and IXUP

Assuming the 90 days trading horizon Talisman Mining is expected to under-perform the IXUP. But the stock apears to be less risky and, when comparing its historical volatility, Talisman Mining is 2.44 times less risky than IXUP. The stock trades about -0.08 of its potential returns per unit of risk. The IXUP is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  1.10  in IXUP on December 30, 2024 and sell it today you would lose (0.30) from holding IXUP or give up 27.27% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Talisman Mining  vs.  IXUP

Talisman Mining

Risk-Adjusted Performance

Very Weak

Over the last 90 days Talisman Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's primary indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

IXUP

Risk-Adjusted Performance

Very Weak

Over the last 90 days IXUP has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Talisman Mining and IXUP

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

The idea behind Talisman Mining and IXUP 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.