Correlation Between Avino Silver and FG Acquisition
Can any of the company-specific risk be diversified away by investing in both Avino Silver and FG Acquisition 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 FG Acquisition 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 FG Acquisition Corp, you can compare the effects of market volatilities on Avino Silver and FG Acquisition 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 FG Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avino Silver and FG Acquisition.
Diversification Opportunities for Avino Silver and FG Acquisition
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Avino and FGAA-U is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Avino Silver Gold and FG Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FG Acquisition Corp 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 FG Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FG Acquisition Corp has no effect on the direction of Avino Silver i.e., Avino Silver and FG Acquisition go up and down completely randomly.
Pair Corralation between Avino Silver and FG Acquisition
If you would invest 148.00 in Avino Silver Gold on September 12, 2024 and sell it today you would earn a total of 18.00 from holding Avino Silver Gold or generate 12.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 60.87% |
| Values | Daily Returns |
Avino Silver Gold vs. FG Acquisition Corp
Performance |
| Timeline |
| Avino Silver Gold |
| FG Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Avino Silver and FG Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avino Silver and FG Acquisition
The main advantage of trading using opposite Avino Silver and FG Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avino Silver position performs unexpectedly, FG Acquisition 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 FG Acquisition will offset losses from the drop in FG Acquisition's long position.| Avino Silver vs. Computer Modelling Group | Avino Silver vs. Richelieu Hardware | Avino Silver vs. Faction Investment Group | Avino Silver vs. Sparx Technology |
| FG Acquisition vs. Westshore Terminals Investment | FG Acquisition vs. Mako Mining Corp | FG Acquisition vs. Dream Industrial Real | FG Acquisition vs. Nicola Mining |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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