Correlation Between Ferroglobe PLC and Americas Silver
Can any of the company-specific risk be diversified away by investing in both Ferroglobe PLC and Americas 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 Ferroglobe PLC and Americas Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ferroglobe PLC and Americas Silver Corp, you can compare the effects of market volatilities on Ferroglobe PLC and Americas 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 Ferroglobe PLC with a short position of Americas Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ferroglobe PLC and Americas Silver.
Diversification Opportunities for Ferroglobe PLC and Americas Silver
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ferroglobe and Americas is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Ferroglobe PLC and Americas Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Americas Silver Corp and Ferroglobe PLC 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 Ferroglobe PLC are associated (or correlated) with Americas Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Americas Silver Corp has no effect on the direction of Ferroglobe PLC i.e., Ferroglobe PLC and Americas Silver go up and down completely randomly.
Pair Corralation between Ferroglobe PLC and Americas Silver
Considering the 90-day investment horizon Ferroglobe PLC is expected to under-perform the Americas Silver. But the stock apears to be less risky and, when comparing its historical volatility, Ferroglobe PLC is 1.95 times less risky than Americas Silver. The stock trades about -0.01 of its potential returns per unit of risk. The Americas Silver Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 47.00 in Americas Silver Corp on November 26, 2024 and sell it today you would earn a total of 2.70 from holding Americas Silver Corp or generate 5.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Ferroglobe PLC vs. Americas Silver Corp
Performance |
Timeline |
Ferroglobe PLC |
Americas Silver Corp |
Ferroglobe PLC and Americas Silver Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ferroglobe PLC and Americas Silver
The main advantage of trading using opposite Ferroglobe PLC and Americas Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ferroglobe PLC position performs unexpectedly, Americas 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 Americas Silver will offset losses from the drop in Americas Silver's long position.Ferroglobe PLC vs. Fury Gold Mines | ||
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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