Correlation Between Gatos Silver and Silver Tiger
Can any of the company-specific risk be diversified away by investing in both Gatos Silver and Silver Tiger 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 Silver Tiger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gatos Silver and Silver Tiger Metals, you can compare the effects of market volatilities on Gatos Silver and Silver Tiger 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 Silver Tiger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gatos Silver and Silver Tiger.
Diversification Opportunities for Gatos Silver and Silver Tiger
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gatos and Silver is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Gatos Silver and Silver Tiger Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver Tiger Metals 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 Silver Tiger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver Tiger Metals has no effect on the direction of Gatos Silver i.e., Gatos Silver and Silver Tiger go up and down completely randomly.
Pair Corralation between Gatos Silver and Silver Tiger
Given the investment horizon of 90 days Gatos Silver is expected to generate 0.75 times more return on investment than Silver Tiger. However, Gatos Silver is 1.34 times less risky than Silver Tiger. It trades about 0.08 of its potential returns per unit of risk. Silver Tiger Metals is currently generating about 0.02 per unit of risk. If you would invest 450.00 in Gatos Silver on September 14, 2024 and sell it today you would earn a total of 1,062 from holding Gatos Silver or generate 236.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Gatos Silver vs. Silver Tiger Metals
Performance |
| Timeline |
| Gatos Silver |
| Silver Tiger Metals |
Gatos Silver and Silver Tiger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gatos Silver and Silver Tiger
The main advantage of trading using opposite Gatos Silver and Silver Tiger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gatos Silver position performs unexpectedly, Silver Tiger 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 Tiger will offset losses from the drop in Silver Tiger'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 |
| Silver Tiger vs. Defiance Silver Corp | Silver Tiger vs. Summa Silver Corp | Silver Tiger vs. AbraSilver Resource Corp | Silver Tiger 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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