Correlation Between Superior Plus and MAG Silver
Can any of the company-specific risk be diversified away by investing in both Superior Plus and MAG Silver 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 Superior Plus and MAG Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Plus Corp and MAG Silver Corp, you can compare the effects of market volatilities on Superior Plus and MAG Silver 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 Superior Plus with a short position of MAG Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and MAG Silver.
Diversification Opportunities for Superior Plus and MAG Silver
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Superior and MAG is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and MAG Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAG Silver Corp and Superior Plus 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 Superior Plus Corp are associated (or correlated) with MAG Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAG Silver Corp has no effect on the direction of Superior Plus i.e., Superior Plus and MAG Silver go up and down completely randomly.
Pair Corralation between Superior Plus and MAG Silver
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the MAG Silver. But the stock apears to be less risky and, when comparing its historical volatility, Superior Plus Corp is 1.33 times less risky than MAG Silver. The stock trades about -0.11 of its potential returns per unit of risk. The MAG Silver Corp is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,346 in MAG Silver Corp on November 7, 2024 and sell it today you would earn a total of 208.00 from holding MAG Silver Corp or generate 15.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. MAG Silver Corp
Performance |
| Timeline |
| Superior Plus Corp |
| MAG Silver Corp |
Superior Plus and MAG Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and MAG Silver
The main advantage of trading using opposite Superior Plus and MAG Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, MAG Silver 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 MAG Silver will offset losses from the drop in MAG Silver's long position.| Superior Plus vs. GRENKELEASING Dusseldorf | Superior Plus vs. Global Ship Lease | Superior Plus vs. BANKINTER ADR 2007 | Superior Plus vs. Erste Group Bank |
| MAG Silver vs. Pan American Silver | MAG Silver vs. First Majestic Silver | MAG Silver vs. Silvercorp Metals | MAG Silver 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |