Correlation Between BCM Resources and York Harbour
Can any of the company-specific risk be diversified away by investing in both BCM Resources and York Harbour 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 BCM Resources and York Harbour into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BCM Resources and York Harbour Metals, you can compare the effects of market volatilities on BCM Resources and York Harbour 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 BCM Resources with a short position of York Harbour. Check out your portfolio center. Please also check ongoing floating volatility patterns of BCM Resources and York Harbour.
Diversification Opportunities for BCM Resources and York Harbour
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between BCM and York is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding BCM Resources and York Harbour Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on York Harbour Metals and BCM Resources 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 BCM Resources are associated (or correlated) with York Harbour. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of York Harbour Metals has no effect on the direction of BCM Resources i.e., BCM Resources and York Harbour go up and down completely randomly.
Pair Corralation between BCM Resources and York Harbour
Assuming the 90 days horizon BCM Resources is expected to generate 14.25 times less return on investment than York Harbour. But when comparing it to its historical volatility, BCM Resources is 2.19 times less risky than York Harbour. It trades about 0.01 of its potential returns per unit of risk. York Harbour Metals is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 44.00 in York Harbour Metals on November 28, 2024 and sell it today you would lose (39.85) from holding York Harbour Metals or give up 90.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.16% |
| Values | Daily Returns |
BCM Resources vs. York Harbour Metals
Performance |
| Timeline |
| BCM Resources |
| York Harbour Metals |
BCM Resources and York Harbour Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BCM Resources and York Harbour
The main advantage of trading using opposite BCM Resources and York Harbour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BCM Resources position performs unexpectedly, York Harbour 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 York Harbour will offset losses from the drop in York Harbour's long position.| BCM Resources vs. Edison Cobalt Corp | BCM Resources vs. Champion Bear Resources | BCM Resources vs. Avarone Metals | BCM Resources vs. Adriatic Metals PLC |
| York Harbour vs. Norra Metals Corp | York Harbour vs. E79 Resources Corp | York Harbour vs. Voltage Metals Corp | York Harbour vs. Cantex Mine Development |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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