Correlation Between Bear Creek and Advantage Solutions
Can any of the company-specific risk be diversified away by investing in both Bear Creek and Advantage Solutions 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 Bear Creek and Advantage Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bear Creek Mining and Advantage Solutions, you can compare the effects of market volatilities on Bear Creek and Advantage Solutions 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 Bear Creek with a short position of Advantage Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bear Creek and Advantage Solutions.
Diversification Opportunities for Bear Creek and Advantage Solutions
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bear and Advantage is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Bear Creek Mining and Advantage Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advantage Solutions and Bear 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 Bear Creek Mining are associated (or correlated) with Advantage Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advantage Solutions has no effect on the direction of Bear Creek i.e., Bear Creek and Advantage Solutions go up and down completely randomly.
Pair Corralation between Bear Creek and Advantage Solutions
Assuming the 90 days horizon Bear Creek is expected to generate 10.46 times less return on investment than Advantage Solutions. But when comparing it to its historical volatility, Bear Creek Mining is 2.94 times less risky than Advantage Solutions. It trades about 0.01 of its potential returns per unit of risk. Advantage Solutions is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 17.00 in Advantage Solutions on September 4, 2024 and sell it today you would lose (15.00) from holding Advantage Solutions or give up 88.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 74.7% |
| Values | Daily Returns |
Bear Creek Mining vs. Advantage Solutions
Performance |
| Timeline |
| Bear Creek Mining |
| Advantage Solutions |
Bear Creek and Advantage Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bear Creek and Advantage Solutions
The main advantage of trading using opposite Bear Creek and Advantage Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bear Creek position performs unexpectedly, Advantage Solutions 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 Advantage Solutions will offset losses from the drop in Advantage Solutions' long position.| Bear Creek vs. Advantage Solutions | Bear Creek vs. Atlas Corp | Bear Creek vs. PureCycle Technologies | Bear Creek vs. WM Technology |
| Advantage Solutions vs. CannBioRx Life Sciences | Advantage Solutions vs. GCM Grosvenor | Advantage Solutions vs. CuriosityStream |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |