Correlation Between EMX Royalty and Aftermath Silver
Can any of the company-specific risk be diversified away by investing in both EMX Royalty and Aftermath 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 EMX Royalty and Aftermath Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EMX Royalty Corp and Aftermath Silver, you can compare the effects of market volatilities on EMX Royalty and Aftermath 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 EMX Royalty with a short position of Aftermath Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMX Royalty and Aftermath Silver.
Diversification Opportunities for EMX Royalty and Aftermath Silver
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between EMX and Aftermath is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding EMX Royalty Corp and Aftermath Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aftermath Silver and EMX Royalty 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 EMX Royalty Corp are associated (or correlated) with Aftermath Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aftermath Silver has no effect on the direction of EMX Royalty i.e., EMX Royalty and Aftermath Silver go up and down completely randomly.
Pair Corralation between EMX Royalty and Aftermath Silver
Considering the 90-day investment horizon EMX Royalty is expected to generate 25.82 times less return on investment than Aftermath Silver. But when comparing it to its historical volatility, EMX Royalty Corp is 2.68 times less risky than Aftermath Silver. It trades about 0.0 of its potential returns per unit of risk. Aftermath Silver is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 24.00 in Aftermath Silver on August 28, 2024 and sell it today you would earn a total of 8.00 from holding Aftermath Silver or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
EMX Royalty Corp vs. Aftermath Silver
Performance |
| Timeline |
| EMX Royalty Corp |
| Aftermath Silver |
EMX Royalty and Aftermath Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMX Royalty and Aftermath Silver
The main advantage of trading using opposite EMX Royalty and Aftermath Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMX Royalty position performs unexpectedly, Aftermath 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 Aftermath Silver will offset losses from the drop in Aftermath Silver's long position.| EMX Royalty vs. Metalla Royalty Streaming | EMX Royalty vs. Osisko Gold Ro | EMX Royalty vs. Equinox Gold Corp | EMX Royalty vs. SilverCrest Metals |
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.
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