Correlation Between Champion Bear and StrikePoint Gold
Can any of the company-specific risk be diversified away by investing in both Champion Bear and StrikePoint Gold 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 StrikePoint Gold 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 StrikePoint Gold, you can compare the effects of market volatilities on Champion Bear and StrikePoint Gold 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 StrikePoint Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champion Bear and StrikePoint Gold.
Diversification Opportunities for Champion Bear and StrikePoint Gold
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Champion and StrikePoint is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Champion Bear Resources and StrikePoint Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StrikePoint Gold 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 StrikePoint Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of StrikePoint Gold has no effect on the direction of Champion Bear i.e., Champion Bear and StrikePoint Gold go up and down completely randomly.
Pair Corralation between Champion Bear and StrikePoint Gold
Assuming the 90 days horizon Champion Bear Resources is expected to under-perform the StrikePoint Gold. But the pink sheet apears to be less risky and, when comparing its historical volatility, Champion Bear Resources is 2.76 times less risky than StrikePoint Gold. The pink sheet trades about -0.23 of its potential returns per unit of risk. The StrikePoint Gold is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 13.00 in StrikePoint Gold on November 5, 2024 and sell it today you would lose (1.00) from holding StrikePoint Gold or give up 7.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Champion Bear Resources vs. StrikePoint Gold
Performance |
| Timeline |
| Champion Bear Resources |
| StrikePoint Gold |
Champion Bear and StrikePoint Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champion Bear and StrikePoint Gold
The main advantage of trading using opposite Champion Bear and StrikePoint Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champion Bear position performs unexpectedly, StrikePoint Gold 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 StrikePoint Gold will offset losses from the drop in StrikePoint Gold'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 |
| StrikePoint Gold vs. Commerce Resources Corp | StrikePoint Gold vs. Great Western Minerals | StrikePoint Gold vs. Silver Elephant Mining | StrikePoint Gold vs. Eskay Mining 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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