Correlation Between Champion Bear and Centaurus Metals
Can any of the company-specific risk be diversified away by investing in both Champion Bear and Centaurus Metals 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 Champion Bear and Centaurus Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champion Bear Resources and Centaurus Metals Limited, you can compare the effects of market volatilities on Champion Bear and Centaurus Metals 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 Champion Bear with a short position of Centaurus Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champion Bear and Centaurus Metals.
Diversification Opportunities for Champion Bear and Centaurus Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Champion and Centaurus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Champion Bear Resources and Centaurus Metals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centaurus Metals and Champion 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 Champion Bear Resources are associated (or correlated) with Centaurus Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centaurus Metals has no effect on the direction of Champion Bear i.e., Champion Bear and Centaurus Metals go up and down completely randomly.
Pair Corralation between Champion Bear and Centaurus Metals
Assuming the 90 days horizon Champion Bear Resources is expected to generate 5.49 times more return on investment than Centaurus Metals. However, Champion Bear is 5.49 times more volatile than Centaurus Metals Limited. It trades about 0.05 of its potential returns per unit of risk. Centaurus Metals Limited is currently generating about 0.01 per unit of risk. If you would invest 7.00 in Champion Bear Resources on March 27, 2025 and sell it today you would lose (5.00) from holding Champion Bear Resources or give up 71.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Champion Bear Resources vs. Centaurus Metals Limited
Performance |
| Timeline |
| Champion Bear Resources |
| Centaurus Metals |
Champion Bear and Centaurus Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champion Bear and Centaurus Metals
The main advantage of trading using opposite Champion Bear and Centaurus Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champion Bear position performs unexpectedly, Centaurus Metals 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 Centaurus Metals will offset losses from the drop in Centaurus Metals' long position.| Champion Bear vs. Aurelia Metals Limited | Champion Bear vs. Baroyeca Gold Silver | Champion Bear vs. Centaurus Metals Limited | Champion Bear vs. Edison Cobalt Corp |
| Centaurus Metals vs. Edison Cobalt Corp | Centaurus Metals vs. Baroyeca Gold Silver | Centaurus Metals vs. Aurelia Metals Limited | Centaurus Metals vs. China Rare Earth |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Global Correlations Find global opportunities by holding instruments from different markets |