Correlation Between AbraSilver Resource and Cassiar Gold
Can any of the company-specific risk be diversified away by investing in both AbraSilver Resource and Cassiar Gold 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 AbraSilver Resource and Cassiar Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AbraSilver Resource Corp and Cassiar Gold Corp, you can compare the effects of market volatilities on AbraSilver Resource and Cassiar Gold 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 AbraSilver Resource with a short position of Cassiar Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of AbraSilver Resource and Cassiar Gold.
Diversification Opportunities for AbraSilver Resource and Cassiar Gold
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AbraSilver and Cassiar is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding AbraSilver Resource Corp and Cassiar Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cassiar Gold Corp and AbraSilver Resource 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 AbraSilver Resource Corp are associated (or correlated) with Cassiar Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cassiar Gold Corp has no effect on the direction of AbraSilver Resource i.e., AbraSilver Resource and Cassiar Gold go up and down completely randomly.
Pair Corralation between AbraSilver Resource and Cassiar Gold
Assuming the 90 days trading horizon AbraSilver Resource Corp is expected to generate 1.23 times more return on investment than Cassiar Gold. However, AbraSilver Resource is 1.23 times more volatile than Cassiar Gold Corp. It trades about 0.02 of its potential returns per unit of risk. Cassiar Gold Corp is currently generating about -0.1 per unit of risk. If you would invest 274.00 in AbraSilver Resource Corp on October 24, 2024 and sell it today you would lose (1.00) from holding AbraSilver Resource Corp or give up 0.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AbraSilver Resource Corp vs. Cassiar Gold Corp
Performance |
| Timeline |
| AbraSilver Resource Corp |
| Cassiar Gold Corp |
AbraSilver Resource and Cassiar Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AbraSilver Resource and Cassiar Gold
The main advantage of trading using opposite AbraSilver Resource and Cassiar Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AbraSilver Resource position performs unexpectedly, Cassiar Gold 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 Cassiar Gold will offset losses from the drop in Cassiar Gold's long position.| AbraSilver Resource vs. Defiance Silver Corp | AbraSilver Resource vs. Santacruz Silv | AbraSilver Resource vs. Guanajuato Silver | AbraSilver Resource vs. Aftermath Silver |
| Cassiar Gold vs. A W FOOD | Cassiar Gold vs. Profound Medical Corp | Cassiar Gold vs. MTY Food Group | Cassiar Gold vs. Guru Organic Energy |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |