Correlation Between Silvercorp Metals and Greatland Gold
Can any of the company-specific risk be diversified away by investing in both Silvercorp Metals and Greatland Gold 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 Silvercorp Metals and Greatland Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silvercorp Metals and Greatland Gold plc, you can compare the effects of market volatilities on Silvercorp Metals and Greatland Gold 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 Silvercorp Metals with a short position of Greatland Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silvercorp Metals and Greatland Gold.
Diversification Opportunities for Silvercorp Metals and Greatland Gold
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Silvercorp and Greatland is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Silvercorp Metals and Greatland Gold plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greatland Gold plc and Silvercorp Metals 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 Silvercorp Metals are associated (or correlated) with Greatland Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greatland Gold plc has no effect on the direction of Silvercorp Metals i.e., Silvercorp Metals and Greatland Gold go up and down completely randomly.
Pair Corralation between Silvercorp Metals and Greatland Gold
Assuming the 90 days trading horizon Silvercorp Metals is expected to under-perform the Greatland Gold. But the stock apears to be less risky and, when comparing its historical volatility, Silvercorp Metals is 1.19 times less risky than Greatland Gold. The stock trades about -0.01 of its potential returns per unit of risk. The Greatland Gold plc is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 751.00 in Greatland Gold plc on September 5, 2024 and sell it today you would lose (36.00) from holding Greatland Gold plc or give up 4.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.45% |
| Values | Daily Returns |
Silvercorp Metals vs. Greatland Gold plc
Performance |
| Timeline |
| Silvercorp Metals |
| Greatland Gold plc |
Silvercorp Metals and Greatland Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silvercorp Metals and Greatland Gold
The main advantage of trading using opposite Silvercorp Metals and Greatland Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silvercorp Metals position performs unexpectedly, Greatland Gold 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 Greatland Gold will offset losses from the drop in Greatland Gold's long position.| Silvercorp Metals vs. Samsung Electronics Co | Silvercorp Metals vs. Samsung Electronics Co | Silvercorp Metals vs. Hyundai Motor | Silvercorp Metals vs. Toyota Motor Corp |
| Greatland Gold vs. Datagroup SE | Greatland Gold vs. Silvercorp Metals | Greatland Gold vs. Eastman Chemical Co | Greatland Gold vs. Coeur Mining |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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