Correlation Between Bear Creek and Kore Mining
Can any of the company-specific risk be diversified away by investing in both Bear Creek and Kore Mining 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 Kore Mining 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 Kore Mining, you can compare the effects of market volatilities on Bear Creek and Kore Mining 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 Kore Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bear Creek and Kore Mining.
Diversification Opportunities for Bear Creek and Kore Mining
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bear and Kore is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Bear Creek Mining and Kore Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kore Mining 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 Kore Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kore Mining has no effect on the direction of Bear Creek i.e., Bear Creek and Kore Mining go up and down completely randomly.
Pair Corralation between Bear Creek and Kore Mining
Assuming the 90 days horizon Bear Creek is expected to generate 1.25 times less return on investment than Kore Mining. But when comparing it to its historical volatility, Bear Creek Mining is 1.62 times less risky than Kore Mining. It trades about 0.03 of its potential returns per unit of risk. Kore Mining is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 4.00 in Kore Mining on September 3, 2024 and sell it today you would lose (1.00) from holding Kore Mining or give up 25.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bear Creek Mining vs. Kore Mining
Performance |
| Timeline |
| Bear Creek Mining |
| Kore Mining |
Bear Creek and Kore Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bear Creek and Kore Mining
The main advantage of trading using opposite Bear Creek and Kore Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bear Creek position performs unexpectedly, Kore Mining 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 Kore Mining will offset losses from the drop in Kore Mining's long position.| Bear Creek vs. IMPACT Silver Corp | Bear Creek vs. Golden Goliath Resources | Bear Creek vs. Minera Alamos | Bear Creek vs. Chesapeake Gold Corp |
| Kore Mining vs. Algoma Steel Group | Kore Mining vs. Champion Iron | Kore Mining vs. International Zeolite Corp | Kore Mining vs. European Residential Real |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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