Correlation Between First American and Champion Bear
Can any of the company-specific risk be diversified away by investing in both First American and Champion Bear 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 First American and Champion Bear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First American Silver and Champion Bear Resources, you can compare the effects of market volatilities on First American and Champion Bear 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 First American with a short position of Champion Bear. Check out your portfolio center. Please also check ongoing floating volatility patterns of First American and Champion Bear.
Diversification Opportunities for First American and Champion Bear
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Champion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First American Silver and Champion Bear Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champion Bear Resources and First American 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 First American Silver are associated (or correlated) with Champion Bear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champion Bear Resources has no effect on the direction of First American i.e., First American and Champion Bear go up and down completely randomly.
Pair Corralation between First American and Champion Bear
If you would invest 2.00 in Champion Bear Resources on August 25, 2024 and sell it today you would earn a total of 2.00 from holding Champion Bear Resources or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First American Silver vs. Champion Bear Resources
Performance |
| Timeline |
| First American Silver |
| Champion Bear Resources |
First American and Champion Bear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First American and Champion Bear
The main advantage of trading using opposite First American and Champion Bear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First American position performs unexpectedly, Champion Bear 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 Champion Bear will offset losses from the drop in Champion Bear's long position.| First American vs. Norra Metals Corp | First American vs. ZincX Resources Corp | First American vs. Nuinsco Resources Limited | First American vs. South Star Battery |
| Champion Bear vs. Norra Metals Corp | Champion Bear vs. ZincX Resources Corp | Champion Bear vs. Nuinsco Resources Limited | Champion Bear vs. South Star Battery |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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