Correlation Between SilverCrest Metals and Griffin Mining
Can any of the company-specific risk be diversified away by investing in both SilverCrest Metals and Griffin Mining 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 Griffin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SilverCrest Metals and Griffin Mining, you can compare the effects of market volatilities on SilverCrest Metals and Griffin Mining 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 Griffin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of SilverCrest Metals and Griffin Mining.
Diversification Opportunities for SilverCrest Metals and Griffin Mining
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SilverCrest and Griffin is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding SilverCrest Metals and Griffin Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffin Mining 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 Griffin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Griffin Mining has no effect on the direction of SilverCrest Metals i.e., SilverCrest Metals and Griffin Mining go up and down completely randomly.
Pair Corralation between SilverCrest Metals and Griffin Mining
Assuming the 90 days trading horizon SilverCrest Metals is expected to generate 2.26 times more return on investment than Griffin Mining. However, SilverCrest Metals is 2.26 times more volatile than Griffin Mining. It trades about 0.38 of its potential returns per unit of risk. Griffin Mining is currently generating about -0.06 per unit of risk. If you would invest 1,338 in SilverCrest Metals on September 12, 2024 and sell it today you would earn a total of 286.00 from holding SilverCrest Metals or generate 21.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 43.48% |
| Values | Daily Returns |
SilverCrest Metals vs. Griffin Mining
Performance |
| Timeline |
| SilverCrest Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Griffin Mining |
SilverCrest Metals and Griffin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SilverCrest Metals and Griffin Mining
The main advantage of trading using opposite SilverCrest Metals and Griffin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SilverCrest Metals position performs unexpectedly, Griffin Mining 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 Griffin Mining will offset losses from the drop in Griffin Mining's long position.| SilverCrest Metals vs. Hong Kong Land | SilverCrest Metals vs. Neometals | SilverCrest Metals vs. Coor Service Management | SilverCrest Metals vs. Fidelity Sustainable USD |
| Griffin Mining vs. Givaudan SA | Griffin Mining vs. Antofagasta PLC | Griffin Mining vs. Ferrexpo PLC | Griffin Mining vs. Atalaya 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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