Correlation Between Equinox Gold and Avino Silver
Can any of the company-specific risk be diversified away by investing in both Equinox Gold and Avino 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 Equinox Gold and Avino Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equinox Gold Corp and Avino Silver Gold, you can compare the effects of market volatilities on Equinox Gold and Avino 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 Equinox Gold with a short position of Avino Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equinox Gold and Avino Silver.
Diversification Opportunities for Equinox Gold and Avino Silver
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Equinox and Avino is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Equinox Gold Corp and Avino Silver Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avino Silver Gold and Equinox 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 Equinox Gold Corp are associated (or correlated) with Avino Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avino Silver Gold has no effect on the direction of Equinox Gold i.e., Equinox Gold and Avino Silver go up and down completely randomly.
Pair Corralation between Equinox Gold and Avino Silver
Considering the 90-day investment horizon Equinox Gold is expected to generate 27.97 times less return on investment than Avino Silver. But when comparing it to its historical volatility, Equinox Gold Corp is 2.01 times less risky than Avino Silver. It trades about 0.01 of its potential returns per unit of risk. Avino Silver Gold is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 141.00 in Avino Silver Gold on January 10, 2025 and sell it today you would earn a total of 34.00 from holding Avino Silver Gold or generate 24.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Equinox Gold Corp vs. Avino Silver Gold
Performance |
| Timeline |
| Equinox Gold Corp |
| Avino Silver Gold |
Equinox Gold and Avino Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equinox Gold and Avino Silver
The main advantage of trading using opposite Equinox Gold and Avino Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equinox Gold position performs unexpectedly, Avino 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 Avino Silver will offset losses from the drop in Avino Silver's long position.| Equinox Gold vs. Coeur Mining | Equinox Gold vs. B2Gold Corp | Equinox Gold vs. Sandstorm Gold Ltd | Equinox Gold vs. Pan American Silver |
| Avino Silver vs. Hecla Mining | Avino Silver vs. McEwen Mining | Avino Silver vs. Metalla Royalty Streaming | Avino Silver vs. Endeavour Silver Corp |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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