Correlation Between Ximen Mining and Bce

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

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

Diversification Opportunities for Ximen Mining and Bce

0.48

Correlation Coefficient

Ximen Mining  Bce

Very weak diversification

The 3 months correlation between Ximen and Bce is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ximen Mining Corp and Bce Inc Pref in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bce Inc Pref and Ximen 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 Ximen Mining Corp are associated (or correlated) with Bce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bce Inc Pref has no effect on the direction of Ximen Mining i.e., Ximen Mining and Bce go up and down completely randomly.

Pair Corralation between Ximen Mining and Bce

Assuming the 90 days horizon Ximen Mining Corp is expected to generate 10.42 times more return on investment than Bce. However, Ximen Mining is 10.42 times more volatile than Bce Inc Pref. It trades about 0.16 of its potential returns per unit of risk. Bce Inc Pref is currently generating about 0.2 per unit of risk. If you would invest  8.50  in Ximen Mining Corp on December 20, 2024 and sell it today you would earn a total of  7.50  from holding Ximen Mining Corp or generate 88.24% return on investment over 90 days.

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

Ximen Mining Corp  vs.  Bce Inc Pref

Ximen Mining Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ximen Mining Corp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Ximen Mining showed solid returns over the last few months and may actually be approaching a breakup point.

Bce Inc Pref

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bce Inc Pref are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating technical and fundamental indicators, Bce may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Ximen Mining and Bce

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

The idea behind Ximen Mining Corp and Bce Inc Pref 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.