Correlation Between Aftermath Silver and Generation Mining
Can any of the company-specific risk be diversified away by investing in both Aftermath Silver and Generation 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 Aftermath Silver and Generation Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aftermath Silver and Generation Mining Limited, you can compare the effects of market volatilities on Aftermath Silver and Generation 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 Aftermath Silver with a short position of Generation Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aftermath Silver and Generation Mining.
Diversification Opportunities for Aftermath Silver and Generation Mining
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aftermath and Generation is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Aftermath Silver and Generation Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generation Mining 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 Generation Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generation Mining has no effect on the direction of Aftermath Silver i.e., Aftermath Silver and Generation Mining go up and down completely randomly.
Pair Corralation between Aftermath Silver and Generation Mining
Assuming the 90 days horizon Aftermath Silver is expected to generate 0.89 times more return on investment than Generation Mining. However, Aftermath Silver is 1.13 times less risky than Generation Mining. It trades about 0.06 of its potential returns per unit of risk. Generation Mining Limited is currently generating about -0.01 per unit of risk. If you would invest 17.00 in Aftermath Silver on August 31, 2024 and sell it today you would earn a total of 18.00 from holding Aftermath Silver or generate 105.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Aftermath Silver vs. Generation Mining Limited
Performance |
| Timeline |
| Aftermath Silver |
| Generation Mining |
Aftermath Silver and Generation Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aftermath Silver and Generation Mining
The main advantage of trading using opposite Aftermath Silver and Generation Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aftermath Silver position performs unexpectedly, Generation 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 Generation Mining will offset losses from the drop in Generation Mining's long position.| Aftermath Silver vs. Ascendant Resources | Aftermath Silver vs. Nevada King Gold | Aftermath Silver vs. Fathom Nickel | Aftermath Silver vs. Wallbridge Mining |
| Generation Mining vs. Mundoro Capital | Generation Mining vs. Norra Metals Corp | Generation Mining vs. E79 Resources Corp | Generation Mining vs. Voltage Metals 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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