Correlation Between Silvercorp Metals and IShares Physical
Can any of the company-specific risk be diversified away by investing in both Silvercorp Metals and IShares Physical 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 IShares Physical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silvercorp Metals and iShares Physical Silver, you can compare the effects of market volatilities on Silvercorp Metals and IShares Physical 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 IShares Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silvercorp Metals and IShares Physical.
Diversification Opportunities for Silvercorp Metals and IShares Physical
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Silvercorp and IShares is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Silvercorp Metals and iShares Physical Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Physical Silver 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 IShares Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Physical Silver has no effect on the direction of Silvercorp Metals i.e., Silvercorp Metals and IShares Physical go up and down completely randomly.
Pair Corralation between Silvercorp Metals and IShares Physical
Assuming the 90 days trading horizon Silvercorp Metals is expected to under-perform the IShares Physical. In addition to that, Silvercorp Metals is 2.12 times more volatile than iShares Physical Silver. It trades about -0.09 of its total potential returns per unit of risk. iShares Physical Silver is currently generating about -0.02 per unit of volatility. If you would invest 2,966 in iShares Physical Silver on September 20, 2024 and sell it today you would lose (88.00) from holding iShares Physical Silver or give up 2.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silvercorp Metals vs. iShares Physical Silver
Performance |
| Timeline |
| Silvercorp Metals |
| iShares Physical Silver |
Silvercorp Metals and IShares Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silvercorp Metals and IShares Physical
The main advantage of trading using opposite Silvercorp Metals and IShares Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silvercorp Metals position performs unexpectedly, IShares Physical 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 IShares Physical will offset losses from the drop in IShares Physical's long position.| Silvercorp Metals vs. Samsung Electronics Co | Silvercorp Metals vs. Samsung Electronics Co | Silvercorp Metals vs. Hyundai Motor | Silvercorp Metals vs. Reliance Industries Ltd |
| IShares Physical vs. Sabien Technology Group | IShares Physical vs. Polar Capital Technology | IShares Physical vs. Microchip Technology | IShares Physical vs. Elmos Semiconductor SE |
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 Stocks Directory module to find actively traded stocks across global markets.
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