Correlation Between Duketon Mining and Andean Silver
Can any of the company-specific risk be diversified away by investing in both Duketon Mining and Andean 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 Duketon Mining and Andean Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duketon Mining and Andean Silver Limited, you can compare the effects of market volatilities on Duketon Mining and Andean 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 Duketon Mining with a short position of Andean Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duketon Mining and Andean Silver.
Diversification Opportunities for Duketon Mining and Andean Silver
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Duketon and Andean is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Duketon Mining and Andean Silver Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andean Silver Limited and Duketon 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 Duketon Mining are associated (or correlated) with Andean Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andean Silver Limited has no effect on the direction of Duketon Mining i.e., Duketon Mining and Andean Silver go up and down completely randomly.
Pair Corralation between Duketon Mining and Andean Silver
Assuming the 90 days trading horizon Duketon Mining is expected to under-perform the Andean Silver. But the stock apears to be less risky and, when comparing its historical volatility, Duketon Mining is 1.14 times less risky than Andean Silver. The stock trades about -0.01 of its potential returns per unit of risk. The Andean Silver Limited is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 22.00 in Andean Silver Limited on November 3, 2024 and sell it today you would earn a total of 93.00 from holding Andean Silver Limited or generate 422.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.4% |
| Values | Daily Returns |
Duketon Mining vs. Andean Silver Limited
Performance |
| Timeline |
| Duketon Mining |
| Andean Silver Limited |
Duketon Mining and Andean Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duketon Mining and Andean Silver
The main advantage of trading using opposite Duketon Mining and Andean Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duketon Mining position performs unexpectedly, Andean 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 Andean Silver will offset losses from the drop in Andean Silver's long position.| Duketon Mining vs. Northern Star Resources | Duketon Mining vs. Evolution Mining | Duketon Mining vs. Bluescope Steel | Duketon Mining vs. Sandfire Resources NL |
| Andean Silver vs. Northern Star Resources | Andean Silver vs. Evolution Mining | Andean Silver vs. Bluescope Steel | Andean Silver vs. Sandfire Resources NL |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |