Correlation Between Defiance Silver and Teuton Resources

Specify exactly 2 symbols:
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 Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Defiance Silver Corp  vs.  Teuton Resources Corp

 Performance 
       Timeline  
Defiance Silver Corp 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Defiance Silver Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Defiance Silver showed solid returns over the last few months and may actually be approaching a breakup point.
Teuton Resources Corp 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Teuton Resources Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Teuton Resources showed solid returns over the last few months and may actually be approaching a breakup point.

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.
The idea behind Defiance Silver Corp and Teuton Resources 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

Other Complementary Tools

AI Portfolio Prophet
Use AI to generate optimal portfolios and find profitable investment opportunities
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity