Correlation Between Equinox Gold and Americas Silver
Can any of the company-specific risk be diversified away by investing in both Equinox Gold and Americas 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 Americas 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 Americas Silver Corp, you can compare the effects of market volatilities on Equinox Gold and Americas 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 Americas Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equinox Gold and Americas Silver.
Diversification Opportunities for Equinox Gold and Americas Silver
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Equinox and Americas is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Equinox Gold Corp and Americas Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Americas Silver Corp 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 Americas Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Americas Silver Corp has no effect on the direction of Equinox Gold i.e., Equinox Gold and Americas Silver go up and down completely randomly.
Pair Corralation between Equinox Gold and Americas Silver
Considering the 90-day investment horizon Equinox Gold is expected to generate 2.59 times less return on investment than Americas Silver. But when comparing it to its historical volatility, Equinox Gold Corp is 1.66 times less risky than Americas Silver. It trades about 0.06 of its potential returns per unit of risk. Americas Silver Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 22.00 in Americas Silver Corp on November 3, 2024 and sell it today you would earn a total of 29.00 from holding Americas Silver Corp or generate 131.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Equinox Gold Corp vs. Americas Silver Corp
Performance |
| Timeline |
| Equinox Gold Corp |
| Americas Silver Corp |
Equinox Gold and Americas Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equinox Gold and Americas Silver
The main advantage of trading using opposite Equinox Gold and Americas Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equinox Gold position performs unexpectedly, Americas 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 Americas Silver will offset losses from the drop in Americas 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 |
| Americas Silver vs. Vizsla Resources Corp | Americas Silver vs. Western Copper and | Americas Silver vs. EMX Royalty Corp | Americas Silver vs. Alphamin Resources 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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