Correlation Between Cassiar Gold and Fortuna Silver
Can any of the company-specific risk be diversified away by investing in both Cassiar Gold and Fortuna 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 Cassiar Gold and Fortuna Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cassiar Gold Corp and Fortuna Silver Mines, you can compare the effects of market volatilities on Cassiar Gold and Fortuna 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 Cassiar Gold with a short position of Fortuna Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cassiar Gold and Fortuna Silver.
Diversification Opportunities for Cassiar Gold and Fortuna Silver
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cassiar and Fortuna is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Cassiar Gold Corp and Fortuna Silver Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortuna Silver Mines and Cassiar Gold 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 Cassiar Gold Corp are associated (or correlated) with Fortuna Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortuna Silver Mines has no effect on the direction of Cassiar Gold i.e., Cassiar Gold and Fortuna Silver go up and down completely randomly.
Pair Corralation between Cassiar Gold and Fortuna Silver
Assuming the 90 days horizon Cassiar Gold Corp is expected to under-perform the Fortuna Silver. In addition to that, Cassiar Gold is 1.4 times more volatile than Fortuna Silver Mines. It trades about -0.03 of its total potential returns per unit of risk. Fortuna Silver Mines is currently generating about 0.03 per unit of volatility. If you would invest 370.00 in Fortuna Silver Mines on August 26, 2024 and sell it today you would earn a total of 127.00 from holding Fortuna Silver Mines or generate 34.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cassiar Gold Corp vs. Fortuna Silver Mines
Performance |
| Timeline |
| Cassiar Gold Corp |
| Fortuna Silver Mines |
Cassiar Gold and Fortuna Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cassiar Gold and Fortuna Silver
The main advantage of trading using opposite Cassiar Gold and Fortuna Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cassiar Gold position performs unexpectedly, Fortuna 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 Fortuna Silver will offset losses from the drop in Fortuna Silver's long position.| Cassiar Gold vs. Aurion Resources | Cassiar Gold vs. Liberty Gold Corp | Cassiar Gold vs. Orezone Gold Corp | Cassiar Gold vs. Radisson Mining Resources |
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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