Correlation Between Avino Silver and Sibanye Gold
Can any of the company-specific risk be diversified away by investing in both Avino Silver and Sibanye 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 Sibanye 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 Sibanye Gold Ltd, you can compare the effects of market volatilities on Avino Silver and Sibanye 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 Sibanye Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avino Silver and Sibanye Gold.
Diversification Opportunities for Avino Silver and Sibanye Gold
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Avino and Sibanye is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Avino Silver Gold and Sibanye Gold Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sibanye Gold 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 Sibanye Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sibanye Gold has no effect on the direction of Avino Silver i.e., Avino Silver and Sibanye Gold go up and down completely randomly.
Pair Corralation between Avino Silver and Sibanye Gold
Considering the 90-day investment horizon Avino Silver Gold is expected to under-perform the Sibanye Gold. In addition to that, Avino Silver is 1.28 times more volatile than Sibanye Gold Ltd. It trades about -0.19 of its total potential returns per unit of risk. Sibanye Gold Ltd is currently generating about -0.23 per unit of volatility. If you would invest 489.00 in Sibanye Gold Ltd on August 31, 2024 and sell it today you would lose (87.00) from holding Sibanye Gold Ltd or give up 17.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avino Silver Gold vs. Sibanye Gold Ltd
Performance |
| Timeline |
| Avino Silver Gold |
| Sibanye Gold |
Avino Silver and Sibanye Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avino Silver and Sibanye Gold
The main advantage of trading using opposite Avino Silver and Sibanye Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avino Silver position performs unexpectedly, Sibanye 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 Sibanye Gold will offset losses from the drop in Sibanye 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 |
| Sibanye Gold vs. Franco Nevada | Sibanye Gold vs. Alamos Gold | Sibanye Gold vs. Seabridge Gold | Sibanye Gold vs. Osisko Gold Ro |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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