Correlation Between Silver Bear and IMPACT Silver

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

Diversification Opportunities for Silver Bear and IMPACT Silver

0.0

Correlation Coefficient

Silver Bear  IMPACT Silver

Pay attention - limited upside

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

Pair Corralation between Silver Bear and IMPACT Silver

If you would invest  14.00  in IMPACT Silver Corp on December 29, 2024 and sell it today you would earn a total of  0.00  from holding IMPACT Silver Corp 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

Silver Bear Resources  vs.  IMPACT Silver Corp

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 latest stock price disturbance, may contribute to mid-run losses for the stockholders.

IMPACT Silver Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in IMPACT Silver Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, IMPACT Silver may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Silver Bear and IMPACT Silver

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

The idea behind Silver Bear Resources and IMPACT 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.

Check out your portfolio center.

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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.