Correlation Between IMPACT Silver and Silver Bear

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

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

Diversification Opportunities for IMPACT Silver and Silver Bear

0.0

Correlation Coefficient

IMPACT Silver  Silver Bear

Pay attention - limited upside

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

Pair Corralation between IMPACT Silver and Silver Bear

If you would invest  0.03  in Silver Bear Resources on November 29, 2024 and sell it today you would earn a total of  0.00  from holding Silver Bear Resources or generate 0.0% return on investment over 90 days.

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

IMPACT Silver Corp  vs.  Silver Bear Resources

IMPACT Silver Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days IMPACT Silver Corp 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 essential indicators remain nearly stable which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Silver Bear Resources

Risk-Adjusted Performance

Very Weak

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

Pair Trading with IMPACT Silver and Silver Bear

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

The idea behind IMPACT Silver Corp and Silver Bear Resources 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 Stocks Directory module to find actively traded stocks across global markets.