Correlation Between First Quantum and Silver Hammer
Can any of the company-specific risk be diversified away by investing in both First Quantum 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 First Quantum and Silver Hammer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Quantum Minerals and Silver Hammer Mining, you can compare the effects of market volatilities on First Quantum 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 First Quantum with a short position of Silver Hammer. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Quantum and Silver Hammer.
Diversification Opportunities for First Quantum and Silver Hammer
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Silver is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding First Quantum Minerals 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 First Quantum 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 First Quantum Minerals 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 First Quantum i.e., First Quantum and Silver Hammer go up and down completely randomly.
Pair Corralation between First Quantum and Silver Hammer
Assuming the 90 days horizon First Quantum is expected to generate 4.62 times less return on investment than Silver Hammer. But when comparing it to its historical volatility, First Quantum Minerals is 3.68 times less risky than Silver Hammer. It trades about 0.03 of its potential returns per unit of risk. Silver Hammer Mining is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 12.00 in Silver Hammer Mining on September 1, 2024 and sell it today you would lose (8.19) from holding Silver Hammer Mining or give up 68.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
First Quantum Minerals vs. Silver Hammer Mining
Performance |
| Timeline |
| First Quantum Minerals |
| Silver Hammer Mining |
First Quantum and Silver Hammer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Quantum and Silver Hammer
The main advantage of trading using opposite First Quantum and Silver Hammer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Quantum 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.| First Quantum vs. Amerigo Resources | First Quantum vs. Antofagasta PLC | First Quantum vs. Capstone Copper Corp | First Quantum vs. Copper Mountain 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |