Correlation Between Griffin Mining and SilverCrest Metals
Can any of the company-specific risk be diversified away by investing in both Griffin Mining and SilverCrest Metals 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 Griffin Mining and SilverCrest Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffin Mining and SilverCrest Metals, you can compare the effects of market volatilities on Griffin Mining and SilverCrest Metals 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 Griffin Mining with a short position of SilverCrest Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffin Mining and SilverCrest Metals.
Diversification Opportunities for Griffin Mining and SilverCrest Metals
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Griffin and SilverCrest is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Griffin Mining and SilverCrest Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SilverCrest Metals and Griffin 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 Griffin Mining are associated (or correlated) with SilverCrest Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SilverCrest Metals has no effect on the direction of Griffin Mining i.e., Griffin Mining and SilverCrest Metals go up and down completely randomly.
Pair Corralation between Griffin Mining and SilverCrest Metals
Assuming the 90 days trading horizon Griffin Mining is expected to under-perform the SilverCrest Metals. But the stock apears to be less risky and, when comparing its historical volatility, Griffin Mining is 2.26 times less risky than SilverCrest Metals. The stock trades about -0.06 of its potential returns per unit of risk. The SilverCrest Metals is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 1,338 in SilverCrest Metals on September 12, 2024 and sell it today you would earn a total of 286.00 from holding SilverCrest Metals or generate 21.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 43.48% |
| Values | Daily Returns |
Griffin Mining vs. SilverCrest Metals
Performance |
| Timeline |
| Griffin Mining |
| SilverCrest Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Griffin Mining and SilverCrest Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffin Mining and SilverCrest Metals
The main advantage of trading using opposite Griffin Mining and SilverCrest Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffin Mining position performs unexpectedly, SilverCrest Metals 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 SilverCrest Metals will offset losses from the drop in SilverCrest Metals' long position.| Griffin Mining vs. Givaudan SA | Griffin Mining vs. Antofagasta PLC | Griffin Mining vs. Ferrexpo PLC | Griffin Mining vs. Atalaya Mining |
| SilverCrest Metals vs. Hong Kong Land | SilverCrest Metals vs. Neometals | SilverCrest Metals vs. Coor Service Management | SilverCrest Metals vs. Fidelity Sustainable USD |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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