Correlation Between Silver Bear and Entree Resources

Can any of the company-specific risk be diversified away by investing in both Silver Bear and Entree 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 Silver Bear and Entree Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Silver Bear Resources and Entree Resources, you can compare the effects of market volatilities on Silver Bear and Entree 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 Silver Bear with a short position of Entree Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silver Bear and Entree Resources.

Diversification Opportunities for Silver Bear and Entree Resources

0.0

Correlation Coefficient

Silver Bear  Entree Resources

Pay attention - limited upside

The 3 months correlation between Silver and Entree is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Silver Bear Resources and Entree Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entree Resources and Silver 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 Silver Bear Resources are associated (or correlated) with Entree Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entree Resources has no effect on the direction of Silver Bear i.e., Silver Bear and Entree Resources go up and down completely randomly.

Pair Corralation between Silver Bear and Entree Resources

If you would invest  198.00  in Entree Resources on April 20, 2025 and sell it today you would earn a total of  51.00  from holding Entree Resources or generate 25.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Silver Bear Resources  vs.  Entree Resources

Silver Bear Resources

Risk-Adjusted Performance

Very Weak

Over the last 90 days Silver Bear Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Silver Bear is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Entree Resources

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Entree Resources are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Entree Resources displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Silver Bear and Entree Resources

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

The idea behind Silver Bear Resources and Entree Resources 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.