Correlation Between Aftermath Silver and EMX Royalty
Can any of the company-specific risk be diversified away by investing in both Aftermath Silver and EMX Royalty 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 Aftermath Silver and EMX Royalty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aftermath Silver and EMX Royalty Corp, you can compare the effects of market volatilities on Aftermath Silver and EMX Royalty 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 Aftermath Silver with a short position of EMX Royalty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aftermath Silver and EMX Royalty.
Diversification Opportunities for Aftermath Silver and EMX Royalty
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aftermath and EMX is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Aftermath Silver and EMX Royalty Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMX Royalty Corp and Aftermath 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 Aftermath Silver are associated (or correlated) with EMX Royalty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMX Royalty Corp has no effect on the direction of Aftermath Silver i.e., Aftermath Silver and EMX Royalty go up and down completely randomly.
Pair Corralation between Aftermath Silver and EMX Royalty
Assuming the 90 days horizon Aftermath Silver is expected to generate 2.68 times more return on investment than EMX Royalty. However, Aftermath Silver is 2.68 times more volatile than EMX Royalty Corp. It trades about 0.04 of its potential returns per unit of risk. EMX Royalty Corp is currently generating about 0.0 per unit of risk. If you would invest 24.00 in Aftermath Silver on August 28, 2024 and sell it today you would earn a total of 8.00 from holding Aftermath Silver or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aftermath Silver vs. EMX Royalty Corp
Performance |
| Timeline |
| Aftermath Silver |
| EMX Royalty Corp |
Aftermath Silver and EMX Royalty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aftermath Silver and EMX Royalty
The main advantage of trading using opposite Aftermath Silver and EMX Royalty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aftermath Silver position performs unexpectedly, EMX Royalty 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 EMX Royalty will offset losses from the drop in EMX Royalty's long position.The idea behind Aftermath Silver and EMX Royalty Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| EMX Royalty vs. Metalla Royalty Streaming | EMX Royalty vs. Osisko Gold Ro | EMX Royalty vs. Equinox Gold Corp | EMX Royalty vs. SilverCrest Metals |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |