Correlation Between Dundee Precious and SSR Mining
Can any of the company-specific risk be diversified away by investing in both Dundee Precious and SSR Mining 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 Dundee Precious and SSR Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dundee Precious Metals and SSR Mining, you can compare the effects of market volatilities on Dundee Precious and SSR Mining 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 Dundee Precious with a short position of SSR Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dundee Precious and SSR Mining.
Diversification Opportunities for Dundee Precious and SSR Mining
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dundee and SSR is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Dundee Precious Metals and SSR Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSR Mining and Dundee Precious 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 Dundee Precious Metals are associated (or correlated) with SSR Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSR Mining has no effect on the direction of Dundee Precious i.e., Dundee Precious and SSR Mining go up and down completely randomly.
Pair Corralation between Dundee Precious and SSR Mining
Assuming the 90 days trading horizon Dundee Precious Metals is expected to under-perform the SSR Mining. But the stock apears to be less risky and, when comparing its historical volatility, Dundee Precious Metals is 2.4 times less risky than SSR Mining. The stock trades about -0.14 of its potential returns per unit of risk. The SSR Mining is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 891.00 in SSR Mining on August 25, 2024 and sell it today you would lose (64.00) from holding SSR Mining or give up 7.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Dundee Precious Metals vs. SSR Mining
Performance |
| Timeline |
| Dundee Precious Metals |
| SSR Mining |
Dundee Precious and SSR Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dundee Precious and SSR Mining
The main advantage of trading using opposite Dundee Precious and SSR Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dundee Precious position performs unexpectedly, SSR Mining 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 SSR Mining will offset losses from the drop in SSR Mining's long position.| Dundee Precious vs. Centerra Gold | Dundee Precious vs. SSR Mining | Dundee Precious vs. Alamos Gold | Dundee Precious vs. Endeavour Mining Corp |
| SSR Mining vs. Pan American Silver | SSR Mining vs. MAG Silver Corp | SSR Mining vs. Osisko Gold Ro | SSR Mining vs. Sandstorm Gold Ltd |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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