Correlation Between Bear Creek and Monumental Minerals

Can any of the company-specific risk be diversified away by investing in both Bear Creek and Monumental Minerals 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 Monumental Minerals 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 Monumental Minerals Corp, you can compare the effects of market volatilities on Bear Creek and Monumental Minerals 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 Monumental Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bear Creek and Monumental Minerals.

Diversification Opportunities for Bear Creek and Monumental Minerals

0.25

Correlation Coefficient

Bear Creek  Monumental Minerals

Modest diversification

The 3 months correlation between Bear and Monumental is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Bear Creek Mining and Monumental Minerals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monumental Minerals 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 Monumental Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monumental Minerals Corp has no effect on the direction of Bear Creek i.e., Bear Creek and Monumental Minerals go up and down completely randomly.

Pair Corralation between Bear Creek and Monumental Minerals

Assuming the 90 days horizon Bear Creek Mining is expected to under-perform the Monumental Minerals. But the otc stock apears to be less risky and, when comparing its historical volatility, Bear Creek Mining is 2.18 times less risky than Monumental Minerals. The otc stock trades about -0.12 of its potential returns per unit of risk. The Monumental Minerals Corp is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  2.15  in Monumental Minerals Corp on December 20, 2024 and sell it today you would earn a total of  4.85  from holding Monumental Minerals Corp or generate 225.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Bear Creek Mining  vs.  Monumental Minerals Corp

Bear Creek Mining

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bear Creek Mining has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's forward-looking signals remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Monumental Minerals Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Monumental Minerals Corp are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Monumental Minerals reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bear Creek and Monumental Minerals

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

The idea behind Bear Creek Mining and Monumental Minerals 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.