Correlation Between Gatos Silver and Golden Minerals
Can any of the company-specific risk be diversified away by investing in both Gatos Silver and Golden Minerals 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 Gatos Silver and Golden Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gatos Silver and Golden Minerals, you can compare the effects of market volatilities on Gatos Silver and Golden Minerals 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 Gatos Silver with a short position of Golden Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gatos Silver and Golden Minerals.
Diversification Opportunities for Gatos Silver and Golden Minerals
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gatos and Golden is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Gatos Silver and Golden Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Minerals and Gatos 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 Gatos Silver are associated (or correlated) with Golden Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Minerals has no effect on the direction of Gatos Silver i.e., Gatos Silver and Golden Minerals go up and down completely randomly.
Pair Corralation between Gatos Silver and Golden Minerals
Given the investment horizon of 90 days Gatos Silver is expected to generate 0.63 times more return on investment than Golden Minerals. However, Gatos Silver is 1.58 times less risky than Golden Minerals. It trades about 0.08 of its potential returns per unit of risk. Golden Minerals is currently generating about -0.08 per unit of risk. If you would invest 1,394 in Gatos Silver on October 24, 2024 and sell it today you would earn a total of 46.00 from holding Gatos Silver or generate 3.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 31.25% |
| Values | Daily Returns |
Gatos Silver vs. Golden Minerals
Performance |
| Timeline |
| Gatos Silver |
| Golden Minerals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Gatos Silver and Golden Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gatos Silver and Golden Minerals
The main advantage of trading using opposite Gatos Silver and Golden Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gatos Silver position performs unexpectedly, Golden Minerals 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 Golden Minerals will offset losses from the drop in Golden Minerals' long position.| Gatos Silver vs. Endeavour Silver Corp | Gatos Silver vs. Metalla Royalty Streaming | Gatos Silver vs. New Pacific Metals | Gatos Silver vs. Hecla Mining |
| Golden Minerals vs. Summa Silver Corp | Golden Minerals vs. GoGold Resources | Golden Minerals vs. Scottie Resources Corp | Golden Minerals vs. Brixton 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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