Correlation Between Santacruz Silver and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Santacruz Silver and Dow Jones 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 Santacruz Silver and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Santacruz Silver Mining and Dow Jones Industrial, you can compare the effects of market volatilities on Santacruz Silver and Dow Jones 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 Santacruz Silver with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santacruz Silver and Dow Jones.
Diversification Opportunities for Santacruz Silver and Dow Jones
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Santacruz and Dow is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Santacruz Silver Mining and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Santacruz Silver 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 Santacruz Silver Mining are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Santacruz Silver i.e., Santacruz Silver and Dow Jones go up and down completely randomly.
Pair Corralation between Santacruz Silver and Dow Jones
Assuming the 90 days horizon Santacruz Silver Mining is expected to under-perform the Dow Jones. In addition to that, Santacruz Silver is 9.36 times more volatile than Dow Jones Industrial. It trades about -0.06 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.0 per unit of volatility. If you would invest 4,292,489 in Dow Jones Industrial on September 22, 2024 and sell it today you would lose (8,463) from holding Dow Jones Industrial or give up 0.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
Santacruz Silver Mining vs. Dow Jones Industrial
Performance |
| Timeline |
Santacruz Silver and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Santacruz Silver Mining
Pair trading matchups for Santacruz Silver
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Santacruz Silver and Dow Jones
The main advantage of trading using opposite Santacruz Silver and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santacruz Silver position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Santacruz Silver vs. MCEWEN MINING INC | Santacruz Silver vs. ADRIATIC METALS LS 013355 | Santacruz Silver vs. KENNAMETAL INC | Santacruz Silver vs. AAC TECHNOLOGHLDGADR |
| Dow Jones vs. Hurco Companies | Dow Jones vs. Sabre Corpo | Dow Jones vs. Glacier Bancorp | Dow Jones vs. Barings BDC |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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