Correlation Between Bear Creek and IMPACT Silver
Can any of the company-specific risk be diversified away by investing in both Bear Creek and IMPACT Silver 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 IMPACT Silver 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 IMPACT Silver Corp, you can compare the effects of market volatilities on Bear Creek and IMPACT Silver 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 IMPACT Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bear Creek and IMPACT Silver.
Diversification Opportunities for Bear Creek and IMPACT Silver
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bear and IMPACT is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Bear Creek Mining and IMPACT Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMPACT Silver Corp 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 IMPACT Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IMPACT Silver Corp has no effect on the direction of Bear Creek i.e., Bear Creek and IMPACT Silver go up and down completely randomly.
Pair Corralation between Bear Creek and IMPACT Silver
Assuming the 90 days horizon Bear Creek Mining is expected to under-perform the IMPACT Silver. In addition to that, Bear Creek is 1.15 times more volatile than IMPACT Silver Corp. It trades about -0.1 of its total potential returns per unit of risk. IMPACT Silver Corp is currently generating about -0.04 per unit of volatility. If you would invest 19.00 in IMPACT Silver Corp on September 1, 2024 and sell it today you would lose (2.00) from holding IMPACT Silver Corp or give up 10.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bear Creek Mining vs. IMPACT Silver Corp
Performance |
| Timeline |
| Bear Creek Mining |
| IMPACT Silver Corp |
Bear Creek and IMPACT Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bear Creek and IMPACT Silver
The main advantage of trading using opposite Bear Creek and IMPACT Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bear Creek position performs unexpectedly, IMPACT Silver 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 IMPACT Silver will offset losses from the drop in IMPACT Silver's long position.| Bear Creek vs. South32 Limited | Bear Creek vs. NioCorp Developments Ltd | Bear Creek vs. HUMANA INC | Bear Creek vs. SCOR PK |
| IMPACT Silver vs. Bear Creek Mining | IMPACT Silver vs. Silver One Resources | IMPACT Silver vs. Aftermath Silver | IMPACT Silver vs. Kootenay Silver |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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