Correlation Between Champion Bear and Kiplin Metals
Can any of the company-specific risk be diversified away by investing in both Champion Bear and Kiplin Metals 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 Champion Bear and Kiplin Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champion Bear Resources and Kiplin Metals, you can compare the effects of market volatilities on Champion Bear and Kiplin Metals 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 Champion Bear with a short position of Kiplin Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champion Bear and Kiplin Metals.
Diversification Opportunities for Champion Bear and Kiplin Metals
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Champion and Kiplin is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Champion Bear Resources and Kiplin Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kiplin Metals and Champion Bear 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 Champion Bear Resources are associated (or correlated) with Kiplin Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kiplin Metals has no effect on the direction of Champion Bear i.e., Champion Bear and Kiplin Metals go up and down completely randomly.
Pair Corralation between Champion Bear and Kiplin Metals
Assuming the 90 days horizon Champion Bear Resources is expected to generate 2.87 times more return on investment than Kiplin Metals. However, Champion Bear is 2.87 times more volatile than Kiplin Metals. It trades about 0.08 of its potential returns per unit of risk. Kiplin Metals is currently generating about -0.01 per unit of risk. If you would invest 6.00 in Champion Bear Resources on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Champion Bear Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Champion Bear Resources vs. Kiplin Metals
Performance |
| Timeline |
| Champion Bear Resources |
| Kiplin Metals |
Champion Bear and Kiplin Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champion Bear and Kiplin Metals
The main advantage of trading using opposite Champion Bear and Kiplin Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champion Bear position performs unexpectedly, Kiplin Metals 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 Kiplin Metals will offset losses from the drop in Kiplin Metals' long position.| Champion Bear vs. Kiplin Metals | Champion Bear vs. Pure Energy Minerals | Champion Bear vs. Noram Lithium Corp | Champion Bear vs. Minnova Corp |
| Kiplin Metals vs. First Majestic Silver | Kiplin Metals vs. Ivanhoe Energy | Kiplin Metals vs. Orezone Gold Corp | Kiplin Metals vs. Faraday Copper 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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