Correlation Between East Africa and Silver Hammer
Can any of the company-specific risk be diversified away by investing in both East Africa and Silver Hammer 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 East Africa and Silver Hammer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between East Africa Metals and Silver Hammer Mining, you can compare the effects of market volatilities on East Africa and Silver Hammer 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 East Africa with a short position of Silver Hammer. Check out your portfolio center. Please also check ongoing floating volatility patterns of East Africa and Silver Hammer.
Diversification Opportunities for East Africa and Silver Hammer
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between East and Silver is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding East Africa Metals and Silver Hammer Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver Hammer Mining and East Africa 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 East Africa Metals are associated (or correlated) with Silver Hammer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver Hammer Mining has no effect on the direction of East Africa i.e., East Africa and Silver Hammer go up and down completely randomly.
Pair Corralation between East Africa and Silver Hammer
If you would invest 3.98 in Silver Hammer Mining on November 28, 2024 and sell it today you would earn a total of 4.72 from holding Silver Hammer Mining or generate 118.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
East Africa Metals vs. Silver Hammer Mining
Performance |
| Timeline |
| East Africa Metals |
| Silver Hammer Mining |
East Africa and Silver Hammer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with East Africa and Silver Hammer
The main advantage of trading using opposite East Africa and Silver Hammer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if East Africa position performs unexpectedly, Silver Hammer 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 Silver Hammer will offset losses from the drop in Silver Hammer's long position.| East Africa vs. Pasinex Resources Limited | East Africa vs. Commander Resources | East Africa vs. Forsys Metals Corp | East Africa vs. American CuMo Mining |
| Silver Hammer vs. Arizona Silver Exploration | Silver Hammer vs. Dolly Varden Silver | Silver Hammer vs. Reyna Silver Corp | Silver Hammer vs. Guanajuato Silver |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |