Correlation Between EXCO Resources and Terex
Can any of the company-specific risk be diversified away by investing in both EXCO Resources and Terex 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 EXCO Resources and Terex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EXCO Resources and Terex, you can compare the effects of market volatilities on EXCO Resources and Terex 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 EXCO Resources with a short position of Terex. Check out your portfolio center. Please also check ongoing floating volatility patterns of EXCO Resources and Terex.
Diversification Opportunities for EXCO Resources and Terex
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EXCO and Terex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EXCO Resources and Terex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Terex and EXCO Resources 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 EXCO Resources are associated (or correlated) with Terex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Terex has no effect on the direction of EXCO Resources i.e., EXCO Resources and Terex go up and down completely randomly.
Pair Corralation between EXCO Resources and Terex
If you would invest (100.00) in EXCO Resources on January 20, 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 | 0.0% |
| Values | Daily Returns |
EXCO Resources vs. Terex
Performance |
| Timeline |
| EXCO Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Terex |
EXCO Resources and Terex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EXCO Resources and Terex
The main advantage of trading using opposite EXCO Resources and Terex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EXCO Resources position performs unexpectedly, Terex 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 Terex will offset losses from the drop in Terex's long position.| EXCO Resources vs. Usio Inc | EXCO Resources vs. Western Digital | EXCO Resources vs. Asure Software | EXCO Resources vs. NETGEAR |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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