Correlation Between American Creek and Silver Tiger
Can any of the company-specific risk be diversified away by investing in both American Creek and Silver Tiger 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 Creek and Silver Tiger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Creek Resources and Silver Tiger Metals, you can compare the effects of market volatilities on American Creek and Silver Tiger 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 Creek with a short position of Silver Tiger. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Creek and Silver Tiger.
Diversification Opportunities for American Creek and Silver Tiger
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between American and Silver is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding American Creek Resources and Silver Tiger Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver Tiger Metals and American Creek 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 Creek Resources are associated (or correlated) with Silver Tiger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver Tiger Metals has no effect on the direction of American Creek i.e., American Creek and Silver Tiger go up and down completely randomly.
Pair Corralation between American Creek and Silver Tiger
Assuming the 90 days horizon American Creek Resources is expected to under-perform the Silver Tiger. But the otc stock apears to be less risky and, when comparing its historical volatility, American Creek Resources is 1.12 times less risky than Silver Tiger. The otc stock trades about -0.27 of its potential returns per unit of risk. The Silver Tiger Metals is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 18.00 in Silver Tiger Metals on October 7, 2024 and sell it today you would lose (1.00) from holding Silver Tiger Metals or give up 5.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Creek Resources vs. Silver Tiger Metals
Performance |
| Timeline |
| American Creek Resources |
| Silver Tiger Metals |
American Creek and Silver Tiger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Creek and Silver Tiger
The main advantage of trading using opposite American Creek and Silver Tiger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Creek position performs unexpectedly, Silver Tiger 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 Silver Tiger will offset losses from the drop in Silver Tiger's long position.| American Creek vs. Gold79 Mines | American Creek vs. Arctic Star Exploration | American Creek vs. American Clean Resources | American Creek vs. Arras Minerals Corp |
| Silver Tiger vs. Mantaro Silver Corp | Silver Tiger vs. Monumental Minerals Corp | Silver Tiger vs. Silver Wolf Exploration | Silver Tiger vs. Riverside Resources |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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