Correlation Between Aftermath Silver and Group Ten
Can any of the company-specific risk be diversified away by investing in both Aftermath Silver and Group Ten 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 Group Ten into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aftermath Silver and Group Ten Metals, you can compare the effects of market volatilities on Aftermath Silver and Group Ten 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 Group Ten. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aftermath Silver and Group Ten.
Diversification Opportunities for Aftermath Silver and Group Ten
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aftermath and Group is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Aftermath Silver and Group Ten Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Group Ten Metals 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 Group Ten. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Group Ten Metals has no effect on the direction of Aftermath Silver i.e., Aftermath Silver and Group Ten go up and down completely randomly.
Pair Corralation between Aftermath Silver and Group Ten
Assuming the 90 days horizon Aftermath Silver is expected to generate 1.02 times more return on investment than Group Ten. However, Aftermath Silver is 1.02 times more volatile than Group Ten Metals. It trades about 0.06 of its potential returns per unit of risk. Group Ten Metals 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 | Significant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Aftermath Silver vs. Group Ten Metals
Performance |
| Timeline |
| Aftermath Silver |
| Group Ten Metals |
Aftermath Silver and Group Ten Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aftermath Silver and Group Ten
The main advantage of trading using opposite Aftermath Silver and Group Ten positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aftermath Silver position performs unexpectedly, Group Ten 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 Group Ten will offset losses from the drop in Group Ten's long position.| Aftermath Silver vs. Ascendant Resources | Aftermath Silver vs. Nevada King Gold | Aftermath Silver vs. Fathom Nickel | Aftermath Silver vs. Wallbridge Mining |
| Group Ten vs. Ascendant Resources | Group Ten vs. Atico Mining | Group Ten vs. Prime Mining Corp | Group Ten vs. Wallbridge Mining |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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