Correlation Between BWX Technologies and Adamera Minerals
Can any of the company-specific risk be diversified away by investing in both BWX Technologies and Adamera Minerals 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 BWX Technologies and Adamera Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BWX Technologies and Adamera Minerals Corp, you can compare the effects of market volatilities on BWX Technologies and Adamera Minerals 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 BWX Technologies with a short position of Adamera Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of BWX Technologies and Adamera Minerals.
Diversification Opportunities for BWX Technologies and Adamera Minerals
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BWX and Adamera is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding BWX Technologies and Adamera Minerals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adamera Minerals Corp and BWX Technologies 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 BWX Technologies are associated (or correlated) with Adamera Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adamera Minerals Corp has no effect on the direction of BWX Technologies i.e., BWX Technologies and Adamera Minerals go up and down completely randomly.
Pair Corralation between BWX Technologies and Adamera Minerals
If you would invest 12,214 in BWX Technologies on August 25, 2024 and sell it today you would earn a total of 1,075 from holding BWX Technologies or generate 8.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
BWX Technologies vs. Adamera Minerals Corp
Performance |
| Timeline |
| BWX Technologies |
| Adamera Minerals Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BWX Technologies and Adamera Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BWX Technologies and Adamera Minerals
The main advantage of trading using opposite BWX Technologies and Adamera Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BWX Technologies position performs unexpectedly, Adamera Minerals 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 Adamera Minerals will offset losses from the drop in Adamera Minerals' long position.| BWX Technologies vs. Hexcel | BWX Technologies vs. Ducommun Incorporated | BWX Technologies vs. Mercury Systems | BWX Technologies vs. Woodward |
| Adamera Minerals vs. Cartier Iron Corp | Adamera Minerals vs. Arctic Star Exploration | Adamera Minerals vs. Capella Minerals Limited | Adamera Minerals vs. Denarius Silver 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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