Correlation Between American Copper and Avino Silver
Can any of the company-specific risk be diversified away by investing in both American Copper and Avino 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 American Copper and Avino Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Copper Development and Avino Silver Gold, you can compare the effects of market volatilities on American Copper and Avino 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 American Copper with a short position of Avino Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Copper and Avino Silver.
Diversification Opportunities for American Copper and Avino Silver
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and Avino is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding American Copper Development and Avino Silver Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avino Silver Gold and American Copper 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 American Copper Development are associated (or correlated) with Avino Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avino Silver Gold has no effect on the direction of American Copper i.e., American Copper and Avino Silver go up and down completely randomly.
Pair Corralation between American Copper and Avino Silver
Assuming the 90 days horizon American Copper Development is expected to generate 3.86 times more return on investment than Avino Silver. However, American Copper is 3.86 times more volatile than Avino Silver Gold. It trades about 0.05 of its potential returns per unit of risk. Avino Silver Gold is currently generating about 0.11 per unit of risk. If you would invest 8.61 in American Copper Development on November 3, 2024 and sell it today you would lose (6.21) from holding American Copper Development or give up 72.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
American Copper Development vs. Avino Silver Gold
Performance |
| Timeline |
| American Copper Deve |
| Avino Silver Gold |
American Copper and Avino Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Copper and Avino Silver
The main advantage of trading using opposite American Copper and Avino Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Copper position performs unexpectedly, Avino 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 Avino Silver will offset losses from the drop in Avino Silver's long position.| American Copper vs. EastGroup Properties | American Copper vs. National CineMedia | American Copper vs. Catalyst Metals Limited | American Copper vs. Fluent Inc |
| Avino Silver vs. Hecla Mining | Avino Silver vs. SilverCrest Metals | Avino Silver vs. McEwen Mining | Avino Silver vs. Metalla Royalty Streaming |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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