Correlation Between FPX Nickel and Bear Creek
Can any of the company-specific risk be diversified away by investing in both FPX Nickel and Bear Creek 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 FPX Nickel and Bear Creek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FPX Nickel Corp and Bear Creek Mining, you can compare the effects of market volatilities on FPX Nickel and Bear Creek 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 FPX Nickel with a short position of Bear Creek. Check out your portfolio center. Please also check ongoing floating volatility patterns of FPX Nickel and Bear Creek.
Diversification Opportunities for FPX Nickel and Bear Creek
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FPX and Bear is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding FPX Nickel Corp and Bear Creek Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bear Creek Mining and FPX Nickel 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 FPX Nickel Corp are associated (or correlated) with Bear Creek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bear Creek Mining has no effect on the direction of FPX Nickel i.e., FPX Nickel and Bear Creek go up and down completely randomly.
Pair Corralation between FPX Nickel and Bear Creek
Assuming the 90 days horizon FPX Nickel is expected to generate 2.31 times less return on investment than Bear Creek. But when comparing it to its historical volatility, FPX Nickel Corp is 2.18 times less risky than Bear Creek. It trades about 0.16 of its potential returns per unit of risk. Bear Creek Mining is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 24.00 in Bear Creek Mining on September 4, 2025 and sell it today you would earn a total of 30.00 from holding Bear Creek Mining or generate 125.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FPX Nickel Corp vs. Bear Creek Mining
Performance |
| Timeline |
| FPX Nickel Corp |
| Bear Creek Mining |
FPX Nickel and Bear Creek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FPX Nickel and Bear Creek
The main advantage of trading using opposite FPX Nickel and Bear Creek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FPX Nickel position performs unexpectedly, Bear Creek 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 Bear Creek will offset losses from the drop in Bear Creek's long position.| FPX Nickel vs. Dream Industrial Real | FPX Nickel vs. Theralase Technologies | FPX Nickel vs. Pond Technologies Holdings | FPX Nickel vs. AGF Management Limited |
| Bear Creek vs. Doman Building Materials | Bear Creek vs. Rogers Communications | Bear Creek vs. Western Investment | Bear Creek vs. Canadian General Investments |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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