Correlation Between Fortuna Silver and I 80
Can any of the company-specific risk be diversified away by investing in both Fortuna Silver and I 80 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 Fortuna Silver and I 80 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortuna Silver Mines and I 80 Gold Corp, you can compare the effects of market volatilities on Fortuna Silver and I 80 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 Fortuna Silver with a short position of I 80. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortuna Silver and I 80.
Diversification Opportunities for Fortuna Silver and I 80
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fortuna and IAUX is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Fortuna Silver Mines and I 80 Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I 80 Gold and Fortuna Silver 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 Fortuna Silver Mines are associated (or correlated) with I 80. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I 80 Gold has no effect on the direction of Fortuna Silver i.e., Fortuna Silver and I 80 go up and down completely randomly.
Pair Corralation between Fortuna Silver and I 80
Considering the 90-day investment horizon Fortuna Silver Mines is expected to generate 0.64 times more return on investment than I 80. However, Fortuna Silver Mines is 1.56 times less risky than I 80. It trades about 0.05 of its potential returns per unit of risk. I 80 Gold Corp is currently generating about -0.02 per unit of risk. If you would invest 323.00 in Fortuna Silver Mines on November 19, 2024 and sell it today you would earn a total of 192.00 from holding Fortuna Silver Mines or generate 59.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fortuna Silver Mines vs. I 80 Gold Corp
Performance |
| Timeline |
| Fortuna Silver Mines |
| I 80 Gold |
Fortuna Silver and I 80 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortuna Silver and I 80
The main advantage of trading using opposite Fortuna Silver and I 80 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortuna Silver position performs unexpectedly, I 80 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 I 80 will offset losses from the drop in I 80's long position.| Fortuna Silver vs. Pan American Silver | Fortuna Silver vs. Harmony Gold Mining | Fortuna Silver vs. IAMGold | Fortuna Silver vs. Kinross Gold |
| I 80 vs. K92 Mining | I 80 vs. Wesdome Gold Mines | I 80 vs. Fortuna Silver Mines | I 80 vs. Sandstorm Gold Ltd |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |