Correlation Between Avino Silver and Chesapeake Gold
Can any of the company-specific risk be diversified away by investing in both Avino Silver and Chesapeake Gold 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 Chesapeake Gold 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 Chesapeake Gold Corp, you can compare the effects of market volatilities on Avino Silver and Chesapeake Gold 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 Chesapeake Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avino Silver and Chesapeake Gold.
Diversification Opportunities for Avino Silver and Chesapeake Gold
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Avino and Chesapeake is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Avino Silver Gold and Chesapeake Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chesapeake Gold 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 Chesapeake Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chesapeake Gold Corp has no effect on the direction of Avino Silver i.e., Avino Silver and Chesapeake Gold go up and down completely randomly.
Pair Corralation between Avino Silver and Chesapeake Gold
Considering the 90-day investment horizon Avino Silver Gold is expected to generate 0.89 times more return on investment than Chesapeake Gold. However, Avino Silver Gold is 1.13 times less risky than Chesapeake Gold. It trades about 0.11 of its potential returns per unit of risk. Chesapeake Gold Corp is currently generating about -0.01 per unit of risk. If you would invest 46.00 in Avino Silver Gold on November 3, 2024 and sell it today you would earn a total of 73.00 from holding Avino Silver Gold or generate 158.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Avino Silver Gold vs. Chesapeake Gold Corp
Performance |
| Timeline |
| Avino Silver Gold |
| Chesapeake Gold Corp |
Avino Silver and Chesapeake Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avino Silver and Chesapeake Gold
The main advantage of trading using opposite Avino Silver and Chesapeake Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avino Silver position performs unexpectedly, Chesapeake Gold 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 Chesapeake Gold will offset losses from the drop in Chesapeake Gold's long position.| Avino Silver vs. Hecla Mining | Avino Silver vs. SilverCrest Metals | Avino Silver vs. McEwen Mining | Avino Silver vs. Metalla Royalty Streaming |
| Chesapeake Gold vs. Eastern Platinum Limited | Chesapeake Gold vs. Thunder Mountain Gold | Chesapeake Gold vs. AbraSilver Resource Corp | Chesapeake Gold vs. Provenance Gold 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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