Correlation Between Ecora Resources and Polaris Infrastructure

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

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

Diversification Opportunities for Ecora Resources and Polaris Infrastructure

0.81

Correlation Coefficient

Ecora Resources  Polaris Infrastructure

Very poor diversification

The 3 months correlation between Ecora and Polaris is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Ecora Resources plc and Polaris Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polaris Infrastructure and Ecora 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 Ecora Resources plc are associated (or correlated) with Polaris Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polaris Infrastructure has no effect on the direction of Ecora Resources i.e., Ecora Resources and Polaris Infrastructure go up and down completely randomly.

Pair Corralation between Ecora Resources and Polaris Infrastructure

Assuming the 90 days trading horizon Ecora Resources plc is expected to generate 1.95 times more return on investment than Polaris Infrastructure. However, Ecora Resources is 1.95 times more volatile than Polaris Infrastructure. It trades about 0.21 of its potential returns per unit of risk. Polaris Infrastructure is currently generating about 0.19 per unit of risk. If you would invest  119.00  in Ecora Resources plc on June 29, 2025 and sell it today you would earn a total of  40.00  from holding Ecora Resources plc or generate 33.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.41%
Values	Daily Returns

Ecora Resources plc  vs.  Polaris Infrastructure

Ecora Resources plc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ecora Resources plc are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Ecora Resources displayed solid returns over the last few months and may actually be approaching a breakup point.

Polaris Infrastructure

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Polaris Infrastructure are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady technical and fundamental indicators, Polaris Infrastructure displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ecora Resources and Polaris Infrastructure

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

The idea behind Ecora Resources plc and Polaris Infrastructure 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.

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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.