Correlation Between Québec Nickel and Champion Bear
Can any of the company-specific risk be diversified away by investing in both Québec Nickel 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 Québec Nickel and Champion Bear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qubec Nickel Corp and Champion Bear Resources, you can compare the effects of market volatilities on Québec Nickel 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 Québec Nickel with a short position of Champion Bear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Québec Nickel and Champion Bear.
Diversification Opportunities for Québec Nickel and Champion Bear
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Québec and Champion is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Qubec Nickel Corp 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 Québec Nickel 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 Qubec Nickel Corp 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 Québec Nickel i.e., Québec Nickel and Champion Bear go up and down completely randomly.
Pair Corralation between Québec Nickel and Champion Bear
Assuming the 90 days horizon Québec Nickel is expected to generate 23.04 times less return on investment than Champion Bear. But when comparing it to its historical volatility, Qubec Nickel Corp is 2.3 times less risky than Champion Bear. It trades about 0.0 of its potential returns per unit of risk. Champion Bear Resources is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 15.00 in Champion Bear Resources on September 3, 2024 and sell it today you would lose (11.00) from holding Champion Bear Resources or give up 73.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Qubec Nickel Corp vs. Champion Bear Resources
Performance |
| Timeline |
| Qubec Nickel Corp |
| Champion Bear Resources |
Québec Nickel and Champion Bear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Québec Nickel and Champion Bear
The main advantage of trading using opposite Québec Nickel and Champion Bear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Québec Nickel 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.| Québec Nickel vs. Norra Metals Corp | Québec Nickel vs. E79 Resources Corp | Québec Nickel vs. Voltage Metals Corp | Québec Nickel vs. Cantex Mine Development |
| Champion Bear vs. Aurelia Metals Limited | Champion Bear vs. Baroyeca Gold Silver | Champion Bear vs. Centaurus Metals Limited | Champion Bear vs. Edison Cobalt 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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