Correlation Between TINC Comm and Pan American
Can any of the company-specific risk be diversified away by investing in both TINC Comm and Pan American 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 TINC Comm and Pan American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TINC Comm VA and Pan American Silver, you can compare the effects of market volatilities on TINC Comm and Pan American 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 TINC Comm with a short position of Pan American. Check out your portfolio center. Please also check ongoing floating volatility patterns of TINC Comm and Pan American.
Diversification Opportunities for TINC Comm and Pan American
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TINC and Pan is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding TINC Comm VA and Pan American Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pan American Silver and TINC Comm 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 TINC Comm VA are associated (or correlated) with Pan American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pan American Silver has no effect on the direction of TINC Comm i.e., TINC Comm and Pan American go up and down completely randomly.
Pair Corralation between TINC Comm and Pan American
Assuming the 90 days horizon TINC Comm VA is expected to generate 0.27 times more return on investment than Pan American. However, TINC Comm VA is 3.67 times less risky than Pan American. It trades about -0.09 of its potential returns per unit of risk. Pan American Silver is currently generating about -0.13 per unit of risk. If you would invest 1,120 in TINC Comm VA on September 23, 2024 and sell it today you would lose (32.00) from holding TINC Comm VA or give up 2.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TINC Comm VA vs. Pan American Silver
Performance |
| Timeline |
| TINC Comm VA |
| Pan American Silver |
TINC Comm and Pan American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TINC Comm and Pan American
The main advantage of trading using opposite TINC Comm and Pan American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TINC Comm position performs unexpectedly, Pan American 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 Pan American will offset losses from the drop in Pan American's long position.| TINC Comm vs. Virtus Investment Partners | TINC Comm vs. MGIC INVESTMENT | TINC Comm vs. Chuangs China Investments | TINC Comm vs. PennantPark Investment |
| Pan American vs. First Majestic Silver | Pan American vs. MAG Silver Corp | Pan American vs. Silvercorp Metals | Pan American vs. Endeavour Silver Corp |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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