Correlation Between Silver Bear and Intermap Technologies

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

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

Diversification Opportunities for Silver Bear and Intermap Technologies

0.0

Correlation Coefficient

Silver Bear  Intermap Technologies

Pay attention - limited upside

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

Pair Corralation between Silver Bear and Intermap Technologies

If you would invest  80.00  in Intermap Technologies Corp on September 16, 2024 and sell it today you would earn a total of  151.00  from holding Intermap Technologies Corp or generate 188.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Silver Bear Resources  vs.  Intermap Technologies Corp

Silver Bear Resources

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Silver Bear Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Silver Bear is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Intermap Technologies

Risk-Adjusted Performance

25 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Intermap Technologies Corp are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Intermap Technologies displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Silver Bear and Intermap Technologies

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

The idea behind Silver Bear Resources and Intermap Technologies 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.