Correlation Between Silver One and Bear Creek
Can any of the company-specific risk be diversified away by investing in both Silver One 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 One 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 One Resources and Bear Creek Mining, you can compare the effects of market volatilities on Silver One 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 One with a short position of Bear Creek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silver One and Bear Creek.
Diversification Opportunities for Silver One and Bear Creek
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Silver and Bear is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Silver One 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 Silver One 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 One 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 Silver One i.e., Silver One and Bear Creek go up and down completely randomly.
Pair Corralation between Silver One and Bear Creek
Assuming the 90 days horizon Silver One Resources is expected to under-perform the Bear Creek. But the otc stock apears to be less risky and, when comparing its historical volatility, Silver One Resources is 1.18 times less risky than Bear Creek. The otc stock trades about -0.26 of its potential returns per unit of risk. The Bear Creek Mining is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 38.00 in Bear Creek Mining on September 1, 2024 and sell it today you would lose (8.00) from holding Bear Creek Mining or give up 21.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silver One Resources vs. Bear Creek Mining
Performance |
| Timeline |
| Silver One Resources |
| Bear Creek Mining |
Silver One and Bear Creek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silver One and Bear Creek
The main advantage of trading using opposite Silver One and Bear Creek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silver One 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 One vs. Silver Hammer Mining | Silver One vs. Bald Eagle Gold | Silver One vs. Discovery Metals Corp | Silver One vs. IMPACT Silver Corp |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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