Correlation Between American Creek and USCorp
Can any of the company-specific risk be diversified away by investing in both American Creek and USCorp 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 American Creek and USCorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Creek Resources and USCorp, you can compare the effects of market volatilities on American Creek and USCorp 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 American Creek with a short position of USCorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Creek and USCorp.
Diversification Opportunities for American Creek and USCorp
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and USCorp is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding American Creek Resources and USCorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USCorp and American Creek 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 American Creek Resources are associated (or correlated) with USCorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USCorp has no effect on the direction of American Creek i.e., American Creek and USCorp go up and down completely randomly.
Pair Corralation between American Creek and USCorp
Assuming the 90 days horizon American Creek Resources is expected to under-perform the USCorp. But the otc stock apears to be less risky and, when comparing its historical volatility, American Creek Resources is 5.66 times less risky than USCorp. The otc stock trades about -0.06 of its potential returns per unit of risk. The USCorp is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 0.01 in USCorp on October 26, 2024 and sell it today you would earn a total of 0.01 from holding USCorp or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
American Creek Resources vs. USCorp
Performance |
| Timeline |
| American Creek Resources |
| USCorp |
American Creek and USCorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Creek and USCorp
The main advantage of trading using opposite American Creek and USCorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Creek position performs unexpectedly, USCorp 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 USCorp will offset losses from the drop in USCorp's long position.| American Creek vs. Gold79 Mines | American Creek vs. Arctic Star Exploration | American Creek vs. American Clean Resources | American Creek vs. Arras Minerals Corp |
| USCorp vs. Arctic Star Exploration | USCorp vs. American Clean Resources | USCorp vs. Arras Minerals Corp | USCorp vs. American Creek Resources |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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