Correlation Between SilverCrest Metals and ACG Acquisition
Can any of the company-specific risk be diversified away by investing in both SilverCrest Metals and ACG Acquisition 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 SilverCrest Metals and ACG Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SilverCrest Metals and ACG Acquisition Co, you can compare the effects of market volatilities on SilverCrest Metals and ACG Acquisition 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 SilverCrest Metals with a short position of ACG Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of SilverCrest Metals and ACG Acquisition.
Diversification Opportunities for SilverCrest Metals and ACG Acquisition
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SilverCrest and ACG is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding SilverCrest Metals and ACG Acquisition Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACG Acquisition and SilverCrest 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 SilverCrest Metals are associated (or correlated) with ACG Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACG Acquisition has no effect on the direction of SilverCrest Metals i.e., SilverCrest Metals and ACG Acquisition go up and down completely randomly.
Pair Corralation between SilverCrest Metals and ACG Acquisition
Assuming the 90 days trading horizon SilverCrest Metals is expected to generate 1.38 times less return on investment than ACG Acquisition. In addition to that, SilverCrest Metals is 2.57 times more volatile than ACG Acquisition Co. It trades about 0.0 of its total potential returns per unit of risk. ACG Acquisition Co is currently generating about 0.01 per unit of volatility. If you would invest 510.00 in ACG Acquisition Co on September 4, 2024 and sell it today you would earn a total of 0.00 from holding ACG Acquisition Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 52.38% |
| Values | Daily Returns |
SilverCrest Metals vs. ACG Acquisition Co
Performance |
| Timeline |
| SilverCrest Metals |
| ACG Acquisition |
SilverCrest Metals and ACG Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SilverCrest Metals and ACG Acquisition
The main advantage of trading using opposite SilverCrest Metals and ACG Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SilverCrest Metals position performs unexpectedly, ACG Acquisition 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 ACG Acquisition will offset losses from the drop in ACG Acquisition's long position.| SilverCrest Metals vs. Gamma Communications PLC | SilverCrest Metals vs. MTI Wireless Edge | SilverCrest Metals vs. Zegona Communications Plc | SilverCrest Metals vs. Alaska Air Group |
| ACG Acquisition vs. Sunny Optical Technology | ACG Acquisition vs. CleanTech Lithium plc | ACG Acquisition vs. Cars Inc | ACG Acquisition vs. Naturhouse Health SA |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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