Correlation Between Defiance Silver and Teuton Resources
Can any of the company-specific risk be diversified away by investing in both Defiance Silver and Teuton Resources 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 Defiance Silver and Teuton Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Defiance Silver Corp and Teuton Resources Corp, you can compare the effects of market volatilities on Defiance Silver and Teuton Resources 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 Defiance Silver with a short position of Teuton Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Defiance Silver and Teuton Resources.
Diversification Opportunities for Defiance Silver and Teuton Resources
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Defiance and Teuton is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Defiance Silver Corp and Teuton Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teuton Resources Corp and Defiance 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 Defiance Silver Corp are associated (or correlated) with Teuton Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teuton Resources Corp has no effect on the direction of Defiance Silver i.e., Defiance Silver and Teuton Resources go up and down completely randomly.
Pair Corralation between Defiance Silver and Teuton Resources
Assuming the 90 days horizon Defiance Silver is expected to generate 2.14 times less return on investment than Teuton Resources. In addition to that, Defiance Silver is 1.35 times more volatile than Teuton Resources Corp. It trades about 0.03 of its total potential returns per unit of risk. Teuton Resources Corp is currently generating about 0.09 per unit of volatility. If you would invest 102.00 in Teuton Resources Corp on August 29, 2025 and sell it today you would earn a total of 24.00 from holding Teuton Resources Corp or generate 23.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Defiance Silver Corp vs. Teuton Resources Corp
Performance |
| Timeline |
| Defiance Silver Corp |
| Teuton Resources Corp |
Defiance Silver and Teuton Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Defiance Silver and Teuton Resources
The main advantage of trading using opposite Defiance Silver and Teuton Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Defiance Silver position performs unexpectedly, Teuton Resources 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 Teuton Resources will offset losses from the drop in Teuton Resources' long position.| Defiance Silver vs. Perseus Mining | Defiance Silver vs. Glacier Media | Defiance Silver vs. Arbor Metals Corp | Defiance Silver vs. VIP Entertainment Technologies |
| Teuton Resources vs. CVW CleanTech | Teuton Resources vs. Upstart Investments | Teuton Resources vs. VIP Entertainment Technologies | Teuton Resources vs. Carrier Connect Data |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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