Correlation Between Canada Silver and Champion Bear
Can any of the company-specific risk be diversified away by investing in both Canada Silver 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 Canada Silver and Champion Bear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canada Silver Cobalt and Champion Bear Resources, you can compare the effects of market volatilities on Canada Silver 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 Canada Silver with a short position of Champion Bear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canada Silver and Champion Bear.
Diversification Opportunities for Canada Silver and Champion Bear
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Canada and Champion is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Canada Silver Cobalt 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 Canada Silver 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 Canada Silver Cobalt 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 Canada Silver i.e., Canada Silver and Champion Bear go up and down completely randomly.
Pair Corralation between Canada Silver and Champion Bear
Assuming the 90 days horizon Canada Silver Cobalt is expected to generate 2.68 times more return on investment than Champion Bear. However, Canada Silver is 2.68 times more volatile than Champion Bear Resources. It trades about 0.11 of its potential returns per unit of risk. Champion Bear Resources is currently generating about 0.05 per unit of risk. If you would invest 39.00 in Canada Silver Cobalt on August 26, 2024 and sell it today you would lose (29.00) from holding Canada Silver Cobalt or give up 74.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canada Silver Cobalt vs. Champion Bear Resources
Performance |
| Timeline |
| Canada Silver Cobalt |
| Champion Bear Resources |
Canada Silver and Champion Bear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canada Silver and Champion Bear
The main advantage of trading using opposite Canada Silver and Champion Bear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canada Silver 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.| Canada Silver vs. Ascendant Resources | Canada Silver vs. Cantex Mine Development | Canada Silver vs. Amarc Resources | Canada Silver vs. Sterling Metals Corp |
| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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