Correlation Between Silver Hammer and Bear Creek
Can any of the company-specific risk be diversified away by investing in both Silver Hammer 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 Silver Hammer and Bear Creek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silver Hammer Mining and Bear Creek Mining, you can compare the effects of market volatilities on Silver Hammer 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 Silver Hammer with a short position of Bear Creek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silver Hammer and Bear Creek.
Diversification Opportunities for Silver Hammer and Bear Creek
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Silver and Bear is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Silver Hammer Mining 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 Silver Hammer 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 Silver Hammer Mining 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 Silver Hammer i.e., Silver Hammer and Bear Creek go up and down completely randomly.
Pair Corralation between Silver Hammer and Bear Creek
Assuming the 90 days horizon Silver Hammer Mining is expected to generate 3.21 times more return on investment than Bear Creek. However, Silver Hammer is 3.21 times more volatile than Bear Creek Mining. It trades about 0.07 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 7.00 in Silver Hammer Mining on September 1, 2024 and sell it today you would lose (3.19) from holding Silver Hammer Mining or give up 45.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Silver Hammer Mining vs. Bear Creek Mining
Performance |
| Timeline |
| Silver Hammer Mining |
| Bear Creek Mining |
Silver Hammer and Bear Creek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silver Hammer and Bear Creek
The main advantage of trading using opposite Silver Hammer and Bear Creek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silver Hammer 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.| Silver Hammer vs. Arizona Silver Exploration | Silver Hammer vs. Dolly Varden Silver | Silver Hammer vs. Reyna Silver Corp | Silver Hammer vs. Guanajuato Silver |
| Bear Creek vs. South32 Limited | Bear Creek vs. NioCorp Developments Ltd | Bear Creek vs. HUMANA INC | Bear Creek vs. SCOR PK |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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