Correlation Between Bonterra Resources and Exploits Discovery

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

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

Diversification Opportunities for Bonterra Resources and Exploits Discovery

-0.2

Correlation Coefficient

Bonterra Resources  Exploits Discovery

Good diversification

The 3 months correlation between Bonterra and Exploits is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Bonterra Resources and Exploits Discovery Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exploits Discovery Corp and Bonterra 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 Bonterra Resources are associated (or correlated) with Exploits Discovery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exploits Discovery Corp has no effect on the direction of Bonterra Resources i.e., Bonterra Resources and Exploits Discovery go up and down completely randomly.

Pair Corralation between Bonterra Resources and Exploits Discovery

Assuming the 90 days horizon Bonterra Resources is expected to under-perform the Exploits Discovery. But the otc stock apears to be less risky and, when comparing its historical volatility, Bonterra Resources is 1.26 times less risky than Exploits Discovery. The otc stock trades about -0.04 of its potential returns per unit of risk. The Exploits Discovery Corp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  2.30  in Exploits Discovery Corp on May 2, 2025 and sell it today you would earn a total of  0.90  from holding Exploits Discovery Corp or generate 39.13% return on investment over 90 days.

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

Bonterra Resources  vs.  Exploits Discovery Corp

Bonterra Resources

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bonterra Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Exploits Discovery Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Exploits Discovery Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Exploits Discovery reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bonterra Resources and Exploits Discovery

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

The idea behind Bonterra Resources and Exploits Discovery 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.

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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.