Correlation Between Benton Resources and Canada Silver
Can any of the company-specific risk be diversified away by investing in both Benton Resources and Canada 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 Benton Resources and Canada Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benton Resources and Canada Silver Cobalt, you can compare the effects of market volatilities on Benton Resources and Canada 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 Benton Resources with a short position of Canada Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benton Resources and Canada Silver.
Diversification Opportunities for Benton Resources and Canada Silver
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Benton and Canada is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Benton Resources and Canada Silver Cobalt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canada Silver Cobalt and Benton 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 Benton Resources are associated (or correlated) with Canada Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canada Silver Cobalt has no effect on the direction of Benton Resources i.e., Benton Resources and Canada Silver go up and down completely randomly.
Pair Corralation between Benton Resources and Canada Silver
Assuming the 90 days horizon Benton Resources is expected to generate 2.31 times more return on investment than Canada Silver. However, Benton Resources is 2.31 times more volatile than Canada Silver Cobalt. It trades about 0.11 of its potential returns per unit of risk. Canada Silver Cobalt is currently generating about 0.06 per unit of risk. If you would invest 6.00 in Benton Resources on October 26, 2024 and sell it today you would earn a total of 1.81 from holding Benton Resources or generate 30.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Benton Resources vs. Canada Silver Cobalt
Performance |
| Timeline |
| Benton Resources |
| Canada Silver Cobalt |
Benton Resources and Canada Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benton Resources and Canada Silver
The main advantage of trading using opposite Benton Resources and Canada Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benton Resources position performs unexpectedly, Canada 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 Canada Silver will offset losses from the drop in Canada Silver's long position.| Benton Resources vs. Aurelia Metals Limited | Benton Resources vs. Artemis Resources | Benton Resources vs. Ascendant Resources | Benton Resources vs. Altiplano Metals |
| Canada Silver vs. Ardea Resources Limited | Canada Silver vs. Centaurus Metals Limited | Canada Silver vs. Blackstone Minerals | Canada Silver vs. ZincX Resources Corp |
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 CEOs Directory module to screen CEOs from public companies around the world.
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