Correlation Between Champion Bear and Pan Global
Can any of the company-specific risk be diversified away by investing in both Champion Bear and Pan Global 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 Pan Global 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 Pan Global Resources, you can compare the effects of market volatilities on Champion Bear and Pan Global 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 Pan Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champion Bear and Pan Global.
Diversification Opportunities for Champion Bear and Pan Global
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Champion and Pan is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Champion Bear Resources and Pan Global Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pan Global Resources 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 Pan Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pan Global Resources has no effect on the direction of Champion Bear i.e., Champion Bear and Pan Global go up and down completely randomly.
Pair Corralation between Champion Bear and Pan Global
Assuming the 90 days horizon Champion Bear Resources is expected to under-perform the Pan Global. In addition to that, Champion Bear is 1.09 times more volatile than Pan Global Resources. It trades about -0.23 of its total potential returns per unit of risk. Pan Global Resources is currently generating about 0.03 per unit of volatility. If you would invest 11.00 in Pan Global Resources on November 5, 2024 and sell it today you would earn a total of 0.00 from holding Pan Global 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. Pan Global Resources
Performance |
| Timeline |
| Champion Bear Resources |
| Pan Global Resources |
Champion Bear and Pan Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champion Bear and Pan Global
The main advantage of trading using opposite Champion Bear and Pan Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champion Bear position performs unexpectedly, Pan Global 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 Pan Global will offset losses from the drop in Pan Global's long position.| Champion Bear vs. Aurelia Metals Limited | Champion Bear vs. Baroyeca Gold Silver | Champion Bear vs. Centaurus Metals Limited | Champion Bear vs. Edison Cobalt Corp |
| Pan Global vs. Hurco Companies | Pan Global vs. Tandem Diabetes Care | Pan Global vs. Alvotech | Pan Global vs. Catalyst Metals Limited |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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