Correlation Between Avino Silver and Americas Silver
Can any of the company-specific risk be diversified away by investing in both Avino Silver and Americas Silver 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 Americas Silver 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 Americas Silver Corp, you can compare the effects of market volatilities on Avino Silver and Americas Silver 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 Americas Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avino Silver and Americas Silver.
Diversification Opportunities for Avino Silver and Americas Silver
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Avino and Americas is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Avino Silver Gold and Americas Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Americas Silver 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 Americas Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Americas Silver Corp has no effect on the direction of Avino Silver i.e., Avino Silver and Americas Silver go up and down completely randomly.
Pair Corralation between Avino Silver and Americas Silver
Considering the 90-day investment horizon Avino Silver is expected to generate 1.0 times less return on investment than Americas Silver. But when comparing it to its historical volatility, Avino Silver Gold is 1.21 times less risky than Americas Silver. It trades about 0.11 of its potential returns per unit of risk. Americas Silver Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 22.00 in Americas Silver Corp on November 3, 2024 and sell it today you would earn a total of 29.00 from holding Americas Silver Corp or generate 131.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avino Silver Gold vs. Americas Silver Corp
Performance |
| Timeline |
| Avino Silver Gold |
| Americas Silver Corp |
Avino Silver and Americas Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avino Silver and Americas Silver
The main advantage of trading using opposite Avino Silver and Americas Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avino Silver position performs unexpectedly, Americas Silver 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 Americas Silver will offset losses from the drop in Americas Silver's long position.| Avino Silver vs. Hecla Mining | Avino Silver vs. SilverCrest Metals | Avino Silver vs. McEwen Mining | Avino Silver vs. Metalla Royalty Streaming |
| Americas Silver vs. Vizsla Resources Corp | Americas Silver vs. Western Copper and | Americas Silver vs. EMX Royalty Corp | Americas Silver vs. Alphamin Resources 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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