Correlation Between Generation Mining and Aftermath Silver
Can any of the company-specific risk be diversified away by investing in both Generation Mining and Aftermath 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 Generation Mining and Aftermath Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Generation Mining Limited and Aftermath Silver, you can compare the effects of market volatilities on Generation Mining and Aftermath 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 Generation Mining with a short position of Aftermath Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Generation Mining and Aftermath Silver.
Diversification Opportunities for Generation Mining and Aftermath Silver
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Generation and Aftermath is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Generation Mining Limited and Aftermath Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aftermath Silver and Generation Mining 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 Generation Mining Limited are associated (or correlated) with Aftermath Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aftermath Silver has no effect on the direction of Generation Mining i.e., Generation Mining and Aftermath Silver go up and down completely randomly.
Pair Corralation between Generation Mining and Aftermath Silver
Assuming the 90 days horizon Generation Mining Limited is expected to under-perform the Aftermath Silver. In addition to that, Generation Mining is 1.13 times more volatile than Aftermath Silver. It trades about -0.01 of its total potential returns per unit of risk. Aftermath Silver is currently generating about 0.06 per unit of volatility. If you would invest 17.00 in Aftermath Silver on August 31, 2024 and sell it today you would earn a total of 18.00 from holding Aftermath Silver or generate 105.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Generation Mining Limited vs. Aftermath Silver
Performance |
| Timeline |
| Generation Mining |
| Aftermath Silver |
Generation Mining and Aftermath Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Generation Mining and Aftermath Silver
The main advantage of trading using opposite Generation Mining and Aftermath Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Generation Mining position performs unexpectedly, Aftermath 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 Aftermath Silver will offset losses from the drop in Aftermath Silver's long position.| Generation Mining vs. Mundoro Capital | Generation Mining vs. Norra Metals Corp | Generation Mining vs. E79 Resources Corp | Generation Mining vs. Voltage Metals Corp |
| Aftermath Silver vs. Ascendant Resources | Aftermath Silver vs. Nevada King Gold | Aftermath Silver vs. Fathom Nickel | Aftermath Silver vs. Wallbridge Mining |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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