Correlation Between Polymetal International and AbraSilver Resource
Can any of the company-specific risk be diversified away by investing in both Polymetal International and AbraSilver Resource 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 Polymetal International and AbraSilver Resource into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polymetal International PLC and AbraSilver Resource Corp, you can compare the effects of market volatilities on Polymetal International and AbraSilver Resource 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 Polymetal International with a short position of AbraSilver Resource. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polymetal International and AbraSilver Resource.
Diversification Opportunities for Polymetal International and AbraSilver Resource
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Polymetal and AbraSilver is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Polymetal International PLC and AbraSilver Resource Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AbraSilver Resource Corp and Polymetal International 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 Polymetal International PLC are associated (or correlated) with AbraSilver Resource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AbraSilver Resource Corp has no effect on the direction of Polymetal International i.e., Polymetal International and AbraSilver Resource go up and down completely randomly.
Pair Corralation between Polymetal International and AbraSilver Resource
Assuming the 90 days horizon Polymetal International PLC is expected to under-perform the AbraSilver Resource. In addition to that, Polymetal International is 1.34 times more volatile than AbraSilver Resource Corp. It trades about -0.14 of its total potential returns per unit of risk. AbraSilver Resource Corp is currently generating about 0.04 per unit of volatility. If you would invest 112.00 in AbraSilver Resource Corp on November 2, 2024 and sell it today you would earn a total of 68.00 from holding AbraSilver Resource Corp or generate 60.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 22.72% |
| Values | Daily Returns |
Polymetal International PLC vs. AbraSilver Resource Corp
Performance |
| Timeline |
| Polymetal International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AbraSilver Resource Corp |
Polymetal International and AbraSilver Resource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polymetal International and AbraSilver Resource
The main advantage of trading using opposite Polymetal International and AbraSilver Resource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polymetal International position performs unexpectedly, AbraSilver Resource 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 AbraSilver Resource will offset losses from the drop in AbraSilver Resource's long position.| Polymetal International vs. Fresnillo PLC | Polymetal International vs. Summa Silver Corp | Polymetal International vs. GoGold Resources | Polymetal International vs. Scottie Resources Corp |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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