Correlation Between ExGen Resources and VVC Exploration

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

By analyzing existing cross correlation between ExGen Resources and VVC Exploration Corp, you can compare the effects of market volatilities on ExGen Resources and VVC Exploration 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 VVC Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of ExGen Resources and VVC Exploration.

Diversification Opportunities for ExGen Resources and VVC Exploration

0.25

Correlation Coefficient

ExGen Resources  VVC Exploration

Modest diversification

The 3 months correlation between ExGen and VVC is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding ExGen Resources and VVC Exploration Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VVC Exploration Corp 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 VVC Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VVC Exploration Corp has no effect on the direction of ExGen Resources i.e., ExGen Resources and VVC Exploration go up and down completely randomly.

Pair Corralation between ExGen Resources and VVC Exploration

Assuming the 90 days horizon ExGen Resources is expected to generate 0.93 times more return on investment than VVC Exploration. However, ExGen Resources is 1.07 times less risky than VVC Exploration. It trades about 0.07 of its potential returns per unit of risk. VVC Exploration Corp is currently generating about 0.02 per unit of risk. If you would invest  9.00  in ExGen Resources on April 21, 2025 and sell it today you would earn a total of  1.00  from holding ExGen Resources or generate 11.11% return on investment over 90 days.

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

ExGen Resources  vs.  VVC Exploration Corp

ExGen Resources

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ExGen Resources are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, ExGen Resources showed solid returns over the last few months and may actually be approaching a breakup point.

VVC Exploration Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in VVC Exploration Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, VVC Exploration showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ExGen Resources and VVC Exploration

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

The idea behind ExGen Resources and VVC Exploration 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.