Correlation Between Ximen Mining and TC Energy

Can any of the company-specific risk be diversified away by investing in both Ximen Mining and TC Energy 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 TC Energy 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 TC Energy Corp, you can compare the effects of market volatilities on Ximen Mining and TC Energy 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 TC Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ximen Mining and TC Energy.

Diversification Opportunities for Ximen Mining and TC Energy

-0.68

Correlation Coefficient

Ximen Mining  TC Energy

Excellent diversification

The 3 months correlation between Ximen and TRP-PB is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Ximen Mining Corp and TC Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TC Energy Corp 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 TC Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TC Energy Corp has no effect on the direction of Ximen Mining i.e., Ximen Mining and TC Energy go up and down completely randomly.

Pair Corralation between Ximen Mining and TC Energy

Assuming the 90 days horizon Ximen Mining Corp is expected to generate 64.06 times more return on investment than TC Energy. However, Ximen Mining is 64.06 times more volatile than TC Energy Corp. It trades about 0.13 of its potential returns per unit of risk. TC Energy Corp is currently generating about 0.06 per unit of risk. If you would invest  70.00  in Ximen Mining Corp on September 25, 2024 and sell it today you would lose (62.50) from holding Ximen Mining Corp or give up 89.29% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	94.38%
Values	Daily Returns

Ximen Mining Corp  vs.  TC Energy Corp

Ximen Mining Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ximen Mining Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

TC Energy Corp

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in TC Energy Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, TC Energy may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Ximen Mining and TC Energy

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

The idea behind Ximen Mining Corp and TC Energy 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.

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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.