Correlation Between Pan American and Bell Food
Can any of the company-specific risk be diversified away by investing in both Pan American and Bell Food 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 Pan American and Bell Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pan American Silver and Bell Food Group, you can compare the effects of market volatilities on Pan American and Bell Food 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 Pan American with a short position of Bell Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pan American and Bell Food.
Diversification Opportunities for Pan American and Bell Food
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pan and Bell is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Pan American Silver and Bell Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bell Food Group and Pan American 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 Pan American Silver are associated (or correlated) with Bell Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bell Food Group has no effect on the direction of Pan American i.e., Pan American and Bell Food go up and down completely randomly.
Pair Corralation between Pan American and Bell Food
Assuming the 90 days trading horizon Pan American Silver is expected to generate 1.38 times more return on investment than Bell Food. However, Pan American is 1.38 times more volatile than Bell Food Group. It trades about 0.3 of its potential returns per unit of risk. Bell Food Group is currently generating about -0.04 per unit of risk. If you would invest 3,007 in Pan American Silver on November 3, 2024 and sell it today you would earn a total of 431.00 from holding Pan American Silver or generate 14.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Pan American Silver vs. Bell Food Group
Performance |
| Timeline |
| Pan American Silver |
| Bell Food Group |
Pan American and Bell Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pan American and Bell Food
The main advantage of trading using opposite Pan American and Bell Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pan American position performs unexpectedly, Bell Food 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 Bell Food will offset losses from the drop in Bell Food's long position.| Pan American vs. GoldMining | Pan American vs. GreenX Metals | Pan American vs. Adriatic Metals | Pan American vs. Golden Metal Resources |
| Bell Food vs. Applied Materials | Bell Food vs. Griffin Mining | Bell Food vs. iShares Physical Silver | Bell Food vs. Vulcan Materials Co |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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