Correlation Between Amarc Resources and BHP Group

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

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

Diversification Opportunities for Amarc Resources and BHP Group

-0.13

Correlation Coefficient

Amarc Resources  BHP Group

Good diversification

The 3 months correlation between Amarc and BHP is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Amarc Resources and BHP Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BHP Group Limited and Amarc Resources 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 Amarc Resources are associated (or correlated) with BHP Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BHP Group Limited has no effect on the direction of Amarc Resources i.e., Amarc Resources and BHP Group go up and down completely randomly.

Pair Corralation between Amarc Resources and BHP Group

Assuming the 90 days horizon Amarc Resources is expected to generate 1.25 times more return on investment than BHP Group. However, Amarc Resources is 1.25 times more volatile than BHP Group Limited. It trades about 0.07 of its potential returns per unit of risk. BHP Group Limited is currently generating about 0.04 per unit of risk. If you would invest  69.00  in Amarc Resources on September 8, 2025 and sell it today you would earn a total of  11.00  from holding Amarc Resources or generate 15.94% return on investment over 90 days.

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

Amarc Resources  vs.  BHP Group Limited

Amarc Resources

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Amarc Resources are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Amarc Resources reported solid returns over the last few months and may actually be approaching a breakup point.

BHP Group Limited

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in BHP Group Limited are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak essential indicators, BHP Group may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with Amarc Resources and BHP Group

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

The idea behind Amarc Resources and BHP Group Limited 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.