Correlation Between Avino Silver and Exro Technologies
Can any of the company-specific risk be diversified away by investing in both Avino Silver and Exro Technologies 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 Avino Silver and Exro Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avino Silver Gold and Exro Technologies, you can compare the effects of market volatilities on Avino Silver and Exro Technologies 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 Avino Silver with a short position of Exro Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avino Silver and Exro Technologies.
Diversification Opportunities for Avino Silver and Exro Technologies
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Avino and Exro is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Avino Silver Gold and Exro Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exro Technologies and Avino 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 Avino Silver Gold are associated (or correlated) with Exro Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exro Technologies has no effect on the direction of Avino Silver i.e., Avino Silver and Exro Technologies go up and down completely randomly.
Pair Corralation between Avino Silver and Exro Technologies
Assuming the 90 days trading horizon Avino Silver Gold is expected to generate 0.68 times more return on investment than Exro Technologies. However, Avino Silver Gold is 1.48 times less risky than Exro Technologies. It trades about 0.04 of its potential returns per unit of risk. Exro Technologies is currently generating about -0.06 per unit of risk. If you would invest 91.00 in Avino Silver Gold on September 4, 2024 and sell it today you would earn a total of 56.00 from holding Avino Silver Gold or generate 61.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avino Silver Gold vs. Exro Technologies
Performance |
| Timeline |
| Avino Silver Gold |
| Exro Technologies |
Avino Silver and Exro Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avino Silver and Exro Technologies
The main advantage of trading using opposite Avino Silver and Exro Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avino Silver position performs unexpectedly, Exro Technologies 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 Exro Technologies will offset losses from the drop in Exro Technologies' long position.| Avino Silver vs. Chemtrade Logistics Income | Avino Silver vs. SalesforceCom CDR | Avino Silver vs. Laurentian Bank | Avino Silver vs. Bank of Nova |
| Exro Technologies vs. Nano One Materials | Exro Technologies vs. Greenlane Renewables | Exro Technologies vs. PyroGenesis Canada | Exro Technologies vs. Vicinity Motor Corp |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |