Correlation Between AfriTin Mining and SilverCrest Metals
Can any of the company-specific risk be diversified away by investing in both AfriTin Mining and SilverCrest Metals 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 AfriTin Mining and SilverCrest Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AfriTin Mining and SilverCrest Metals, you can compare the effects of market volatilities on AfriTin Mining and SilverCrest Metals 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 AfriTin Mining with a short position of SilverCrest Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of AfriTin Mining and SilverCrest Metals.
Diversification Opportunities for AfriTin Mining and SilverCrest Metals
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AfriTin and SilverCrest is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding AfriTin Mining and SilverCrest Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SilverCrest Metals and AfriTin Mining 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 AfriTin Mining are associated (or correlated) with SilverCrest Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SilverCrest Metals has no effect on the direction of AfriTin Mining i.e., AfriTin Mining and SilverCrest Metals go up and down completely randomly.
Pair Corralation between AfriTin Mining and SilverCrest Metals
Assuming the 90 days trading horizon AfriTin Mining is expected to under-perform the SilverCrest Metals. But the stock apears to be less risky and, when comparing its historical volatility, AfriTin Mining is 1.38 times less risky than SilverCrest Metals. The stock trades about -0.01 of its potential returns per unit of risk. The SilverCrest Metals is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 807.00 in SilverCrest Metals on September 5, 2024 and sell it today you would earn a total of 588.00 from holding SilverCrest Metals or generate 72.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 41.57% |
| Values | Daily Returns |
AfriTin Mining vs. SilverCrest Metals
Performance |
| Timeline |
| AfriTin Mining |
| SilverCrest Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
AfriTin Mining and SilverCrest Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AfriTin Mining and SilverCrest Metals
The main advantage of trading using opposite AfriTin Mining and SilverCrest Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AfriTin Mining position performs unexpectedly, SilverCrest Metals 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 SilverCrest Metals will offset losses from the drop in SilverCrest Metals' long position.| AfriTin Mining vs. Antofagasta PLC | AfriTin Mining vs. Atalaya Mining | AfriTin Mining vs. Ferrexpo PLC | AfriTin Mining vs. Amaroq Minerals |
| SilverCrest Metals vs. Ecclesiastical Insurance Office | SilverCrest Metals vs. Capital Drilling | SilverCrest Metals vs. AfriTin Mining | SilverCrest Metals vs. Infrastrutture Wireless Italiane |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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