Correlation Between Arbor Metals and British Amer
Can any of the company-specific risk be diversified away by investing in both Arbor Metals and British Amer 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 Arbor Metals and British Amer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arbor Metals Corp and biOasis Technologies, you can compare the effects of market volatilities on Arbor Metals and British Amer 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 Arbor Metals with a short position of British Amer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arbor Metals and British Amer.
Diversification Opportunities for Arbor Metals and British Amer
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Arbor and British is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Arbor Metals Corp and biOasis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on biOasis Technologies and Arbor Metals 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 Arbor Metals Corp are associated (or correlated) with British Amer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of biOasis Technologies has no effect on the direction of Arbor Metals i.e., Arbor Metals and British Amer go up and down completely randomly.
Pair Corralation between Arbor Metals and British Amer
Assuming the 90 days horizon Arbor Metals Corp is expected to under-perform the British Amer. But the stock apears to be less risky and, when comparing its historical volatility, Arbor Metals Corp is 118.41 times less risky than British Amer. The stock trades about -0.15 of its potential returns per unit of risk. The biOasis Technologies is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 123.00 in biOasis Technologies on August 26, 2024 and sell it today you would lose (122.50) from holding biOasis Technologies or give up 99.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arbor Metals Corp vs. biOasis Technologies
Performance |
| Timeline |
| Arbor Metals Corp |
| biOasis Technologies |
Arbor Metals and British Amer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arbor Metals and British Amer
The main advantage of trading using opposite Arbor Metals and British Amer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arbor Metals position performs unexpectedly, British Amer 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 British Amer will offset losses from the drop in British Amer's long position.| Arbor Metals vs. First Majestic Silver | Arbor Metals vs. Ivanhoe Energy | Arbor Metals vs. Orezone Gold Corp | Arbor Metals vs. Faraday Copper Corp |
| British Amer vs. Western Copper and | British Amer vs. Arbor Metals Corp | British Amer vs. VersaBank | British Amer vs. Definity Financial Corp |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |