Correlation Between Galiano Gold and Fortuna Silver
Can any of the company-specific risk be diversified away by investing in both Galiano Gold and Fortuna Silver 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 Galiano Gold and Fortuna Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galiano Gold and Fortuna Silver Mines, you can compare the effects of market volatilities on Galiano Gold and Fortuna Silver 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 Galiano Gold with a short position of Fortuna Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galiano Gold and Fortuna Silver.
Diversification Opportunities for Galiano Gold and Fortuna Silver
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Galiano and Fortuna is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Galiano Gold and Fortuna Silver Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortuna Silver Mines and Galiano Gold 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 Galiano Gold are associated (or correlated) with Fortuna Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortuna Silver Mines has no effect on the direction of Galiano Gold i.e., Galiano Gold and Fortuna Silver go up and down completely randomly.
Pair Corralation between Galiano Gold and Fortuna Silver
Considering the 90-day investment horizon Galiano Gold is expected to under-perform the Fortuna Silver. In addition to that, Galiano Gold is 1.39 times more volatile than Fortuna Silver Mines. It trades about -0.23 of its total potential returns per unit of risk. Fortuna Silver Mines is currently generating about -0.1 per unit of volatility. If you would invest 512.00 in Fortuna Silver Mines on August 29, 2024 and sell it today you would lose (31.00) from holding Fortuna Silver Mines or give up 6.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galiano Gold vs. Fortuna Silver Mines
Performance |
| Timeline |
| Galiano Gold |
| Fortuna Silver Mines |
Galiano Gold and Fortuna Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galiano Gold and Fortuna Silver
The main advantage of trading using opposite Galiano Gold and Fortuna Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galiano Gold position performs unexpectedly, Fortuna Silver 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 Fortuna Silver will offset losses from the drop in Fortuna Silver's long position.| Galiano Gold vs. Avino Silver Gold | Galiano Gold vs. Americas Silver Corp | Galiano Gold vs. Paramount Gold Nevada | Galiano Gold vs. Fury Gold Mines |
| Fortuna Silver vs. Pan American Silver | Fortuna Silver vs. Harmony Gold Mining | Fortuna Silver vs. IAMGold | Fortuna Silver 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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