Correlation Between Champion Bear and Nexus Real

Can any of the company-specific risk be diversified away by investing in both Champion Bear and Nexus Real 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 Nexus Real 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 Nexus Real Estate, you can compare the effects of market volatilities on Champion Bear and Nexus Real 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 Nexus Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champion Bear and Nexus Real.

Diversification Opportunities for Champion Bear and Nexus Real

0.56

Correlation Coefficient

Champion Bear  Nexus Real

Very weak diversification

The 3 months correlation between Champion and Nexus is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Champion Bear Resources and Nexus Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexus Real Estate 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 Nexus Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexus Real Estate has no effect on the direction of Champion Bear i.e., Champion Bear and Nexus Real go up and down completely randomly.

Pair Corralation between Champion Bear and Nexus Real

Assuming the 90 days horizon Champion Bear Resources is expected to generate 10.7 times more return on investment than Nexus Real. However, Champion Bear is 10.7 times more volatile than Nexus Real Estate. It trades about 0.06 of its potential returns per unit of risk. Nexus Real Estate is currently generating about 0.24 per unit of risk. If you would invest  2.00  in Champion Bear Resources on April 24, 2025 and sell it today you would earn a total of  0.00  from holding Champion Bear Resources or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Champion Bear Resources  vs.  Nexus Real Estate

Champion Bear Resources

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Champion Bear Resources are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Champion Bear showed solid returns over the last few months and may actually be approaching a breakup point.

Nexus Real Estate

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Nexus Real Estate are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Nexus Real sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Champion Bear and Nexus Real

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

The idea behind Champion Bear Resources and Nexus Real Estate 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.

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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.