Correlation Between Canagold Resources and Bear Creek
Can any of the company-specific risk be diversified away by investing in both Canagold Resources and Bear Creek 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 Canagold Resources and Bear Creek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canagold Resources and Bear Creek Mining, you can compare the effects of market volatilities on Canagold Resources and Bear Creek 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 Canagold Resources with a short position of Bear Creek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canagold Resources and Bear Creek.
Diversification Opportunities for Canagold Resources and Bear Creek
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Canagold and Bear is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Canagold Resources and Bear Creek Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bear Creek Mining and Canagold 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 Canagold Resources are associated (or correlated) with Bear Creek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bear Creek Mining has no effect on the direction of Canagold Resources i.e., Canagold Resources and Bear Creek go up and down completely randomly.
Pair Corralation between Canagold Resources and Bear Creek
Assuming the 90 days trading horizon Canagold Resources is expected to generate 0.47 times more return on investment than Bear Creek. However, Canagold Resources is 2.12 times less risky than Bear Creek. It trades about 0.08 of its potential returns per unit of risk. Bear Creek Mining is currently generating about 0.03 per unit of risk. If you would invest 24.00 in Canagold Resources on September 3, 2024 and sell it today you would earn a total of 6.00 from holding Canagold Resources or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canagold Resources vs. Bear Creek Mining
Performance |
| Timeline |
| Canagold Resources |
| Bear Creek Mining |
Canagold Resources and Bear Creek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canagold Resources and Bear Creek
The main advantage of trading using opposite Canagold Resources and Bear Creek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canagold Resources position performs unexpectedly, Bear Creek 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 Bear Creek will offset losses from the drop in Bear Creek's long position.| Canagold Resources vs. Starcore International Mines | Canagold Resources vs. Chesapeake Gold Corp | Canagold Resources vs. Emergent Metals Corp | Canagold Resources vs. Galantas Gold Corp |
| Bear Creek vs. IMPACT Silver Corp | Bear Creek vs. Golden Goliath Resources | Bear Creek vs. Minera Alamos | Bear Creek vs. Chesapeake Gold 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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