Correlation Between Asiamet Resources and Silvercorp Metals
Can any of the company-specific risk be diversified away by investing in both Asiamet Resources and Silvercorp Metals 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 Asiamet Resources and Silvercorp Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asiamet Resources Limited and Silvercorp Metals, you can compare the effects of market volatilities on Asiamet Resources and Silvercorp Metals 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 Asiamet Resources with a short position of Silvercorp Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asiamet Resources and Silvercorp Metals.
Diversification Opportunities for Asiamet Resources and Silvercorp Metals
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asiamet and Silvercorp is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Asiamet Resources Limited and Silvercorp Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silvercorp Metals and Asiamet Resources 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 Asiamet Resources Limited are associated (or correlated) with Silvercorp Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silvercorp Metals has no effect on the direction of Asiamet Resources i.e., Asiamet Resources and Silvercorp Metals go up and down completely randomly.
Pair Corralation between Asiamet Resources and Silvercorp Metals
Assuming the 90 days trading horizon Asiamet Resources is expected to generate 1.72 times less return on investment than Silvercorp Metals. In addition to that, Asiamet Resources is 1.22 times more volatile than Silvercorp Metals. It trades about 0.02 of its total potential returns per unit of risk. Silvercorp Metals is currently generating about 0.04 per unit of volatility. If you would invest 397.00 in Silvercorp Metals on September 14, 2024 and sell it today you would earn a total of 66.00 from holding Silvercorp Metals or generate 16.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asiamet Resources Limited vs. Silvercorp Metals
Performance |
| Timeline |
| Asiamet Resources |
| Silvercorp Metals |
Asiamet Resources and Silvercorp Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asiamet Resources and Silvercorp Metals
The main advantage of trading using opposite Asiamet Resources and Silvercorp Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asiamet Resources position performs unexpectedly, Silvercorp Metals 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 Silvercorp Metals will offset losses from the drop in Silvercorp Metals' long position.| Asiamet Resources vs. Silvercorp Metals | Asiamet Resources vs. GreenX Metals | Asiamet Resources vs. Panther Metals PLC | Asiamet Resources vs. European Metals Holdings |
| Silvercorp Metals vs. Applied Materials | Silvercorp Metals vs. Batm Advanced Communications | Silvercorp Metals vs. Indutrade AB | Silvercorp Metals vs. Wyndham Hotels Resorts |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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