Correlation Between Gatos Silver and Sibanye Gold
Can any of the company-specific risk be diversified away by investing in both Gatos Silver and Sibanye Gold 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 Sibanye Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gatos Silver and Sibanye Gold Ltd, you can compare the effects of market volatilities on Gatos Silver and Sibanye Gold 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 Sibanye Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gatos Silver and Sibanye Gold.
Diversification Opportunities for Gatos Silver and Sibanye Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gatos and Sibanye is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gatos Silver and Sibanye Gold Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sibanye Gold 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 Sibanye Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sibanye Gold has no effect on the direction of Gatos Silver i.e., Gatos Silver and Sibanye Gold go up and down completely randomly.
Pair Corralation between Gatos Silver and Sibanye Gold
If you would invest 352.00 in Sibanye Gold Ltd on November 9, 2024 and sell it today you would earn a total of 48.00 from holding Sibanye Gold Ltd or generate 13.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Gatos Silver vs. Sibanye Gold Ltd
Performance |
| Timeline |
| Gatos Silver |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Sibanye Gold |
Gatos Silver and Sibanye Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gatos Silver and Sibanye Gold
The main advantage of trading using opposite Gatos Silver and Sibanye Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gatos Silver position performs unexpectedly, Sibanye Gold 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 Sibanye Gold will offset losses from the drop in Sibanye Gold's 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 |
| Sibanye Gold vs. AngloGold Ashanti plc | Sibanye Gold vs. Harmony Gold Mining | Sibanye Gold vs. Eldorado Gold Corp | Sibanye Gold vs. Kinross Gold |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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