Correlation Between Bear Creek and Aurcana Corp

Can any of the company-specific risk be diversified away by investing in both Bear Creek and Aurcana Corp 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 Bear Creek and Aurcana Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bear Creek Mining and Aurcana Corp, you can compare the effects of market volatilities on Bear Creek and Aurcana Corp 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 Bear Creek with a short position of Aurcana Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bear Creek and Aurcana Corp.

Diversification Opportunities for Bear Creek and Aurcana Corp

0.0

Correlation Coefficient

Bear Creek  Aurcana Corp

Pay attention - limited upside

The 3 months correlation between Bear and Aurcana is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bear Creek Mining and Aurcana Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurcana Corp and Bear Creek 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 Bear Creek Mining are associated (or correlated) with Aurcana Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurcana Corp has no effect on the direction of Bear Creek i.e., Bear Creek and Aurcana Corp go up and down completely randomly.

Pair Corralation between Bear Creek and Aurcana Corp

If you would invest  41.00  in Bear Creek Mining on September 12, 2024 and sell it today you would lose (11.00) from holding Bear Creek Mining or give up 26.83% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.85%
Values	Daily Returns

Bear Creek Mining  vs.  Aurcana Corp

Bear Creek Mining

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Bear Creek Mining are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward-looking signals, Bear Creek reported solid returns over the last few months and may actually be approaching a breakup point.

Aurcana Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aurcana Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Aurcana Corp is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Bear Creek and Aurcana Corp

The main advantage of trading using opposite Bear Creek and Aurcana Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bear Creek position performs unexpectedly, Aurcana Corp 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 Aurcana Corp will offset losses from the drop in Aurcana Corp's long position.

The idea behind Bear Creek Mining and Aurcana Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.