Correlation Between Windstream Holdings and EXCO Resources
Can any of the company-specific risk be diversified away by investing in both Windstream Holdings and EXCO 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 Windstream Holdings and EXCO Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Windstream Holdings and EXCO Resources, you can compare the effects of market volatilities on Windstream Holdings and EXCO 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 Windstream Holdings with a short position of EXCO Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Windstream Holdings and EXCO Resources.
Diversification Opportunities for Windstream Holdings and EXCO Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Windstream and EXCO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Windstream Holdings and EXCO Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXCO Resources and Windstream Holdings 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 Windstream Holdings are associated (or correlated) with EXCO Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXCO Resources has no effect on the direction of Windstream Holdings i.e., Windstream Holdings and EXCO Resources go up and down completely randomly.
Pair Corralation between Windstream Holdings and EXCO Resources
If you would invest (100.00) in EXCO Resources on January 24, 2024 and sell it today you would earn a total of 100.00 from holding EXCO Resources or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Windstream Holdings vs. EXCO Resources
Performance |
| Timeline |
| Windstream Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| EXCO Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Windstream Holdings and EXCO Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Windstream Holdings and EXCO Resources
The main advantage of trading using opposite Windstream Holdings and EXCO Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Windstream Holdings position performs unexpectedly, EXCO 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 EXCO Resources will offset losses from the drop in EXCO Resources' long position.| Windstream Holdings vs. Luxfer Holdings PLC | Windstream Holdings vs. Air Transport Services | Windstream Holdings vs. Braskem SA Class | Windstream Holdings vs. Aegean Airlines SA |
| EXCO Resources vs. PepsiCo | EXCO Resources vs. Celsius Holdings | EXCO Resources vs. Primo Water Corp | EXCO Resources vs. Oatly Group AB |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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