Correlation Between Grande Portage and Blackrock Silver

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

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

Diversification Opportunities for Grande Portage and Blackrock Silver

0.27

Correlation Coefficient

Grande Portage  Blackrock Silver

Modest diversification

The 3 months correlation between Grande and Blackrock is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Grande Portage Resources and Blackrock Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Silver Corp and Grande Portage 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 Grande Portage Resources are associated (or correlated) with Blackrock Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Silver Corp has no effect on the direction of Grande Portage i.e., Grande Portage and Blackrock Silver go up and down completely randomly.

Pair Corralation between Grande Portage and Blackrock Silver

Assuming the 90 days horizon Grande Portage Resources is expected to generate 1.2 times more return on investment than Blackrock Silver. However, Grande Portage is 1.2 times more volatile than Blackrock Silver Corp. It trades about 0.01 of its potential returns per unit of risk. Blackrock Silver Corp is currently generating about 0.0 per unit of risk. If you would invest  19.00  in Grande Portage Resources on December 30, 2024 and sell it today you would lose (1.00) from holding Grande Portage Resources or give up 5.26% of portfolio value over 90 days.

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

Grande Portage Resources  vs.  Blackrock Silver Corp

Grande Portage Resources

Risk-Adjusted Performance

Very Weak

Over the last 90 days Grande Portage Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Grande Portage is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Blackrock Silver Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blackrock Silver Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Blackrock Silver is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Grande Portage and Blackrock Silver

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

The idea behind Grande Portage Resources and Blackrock Silver 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.