Correlation Between ExGen Resources and Leocor Gold

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

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

Diversification Opportunities for ExGen Resources and Leocor Gold

-0.58

Correlation Coefficient

ExGen Resources  Leocor Gold

Excellent diversification

The 3 months correlation between ExGen and Leocor is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding ExGen Resources and Leocor Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leocor Gold and ExGen 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 ExGen Resources are associated (or correlated) with Leocor Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leocor Gold has no effect on the direction of ExGen Resources i.e., ExGen Resources and Leocor Gold go up and down completely randomly.

Pair Corralation between ExGen Resources and Leocor Gold

Assuming the 90 days horizon ExGen Resources is expected to generate 0.42 times more return on investment than Leocor Gold. However, ExGen Resources is 2.4 times less risky than Leocor Gold. It trades about 0.15 of its potential returns per unit of risk. Leocor Gold is currently generating about 0.0 per unit of risk. If you would invest  6.00  in ExGen Resources on July 30, 2025 and sell it today you would earn a total of  2.84  from holding ExGen Resources or generate 47.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

ExGen Resources  vs.  Leocor Gold

ExGen Resources

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ExGen Resources are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, ExGen Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Leocor Gold

Risk-Adjusted Performance

Weakest

Over the last 90 days Leocor Gold has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Leocor Gold is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ExGen Resources and Leocor Gold

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

The idea behind ExGen Resources and Leocor Gold 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..