Correlation Between Silver Hammer and Asante Gold
Can any of the company-specific risk be diversified away by investing in both Silver Hammer and Asante Gold 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 Silver Hammer and Asante Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silver Hammer Mining and Asante Gold, you can compare the effects of market volatilities on Silver Hammer and Asante Gold 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 Silver Hammer with a short position of Asante Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silver Hammer and Asante Gold.
Diversification Opportunities for Silver Hammer and Asante Gold
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Silver and Asante is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Silver Hammer Mining and Asante Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asante Gold and Silver Hammer 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 Silver Hammer Mining are associated (or correlated) with Asante Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asante Gold has no effect on the direction of Silver Hammer i.e., Silver Hammer and Asante Gold go up and down completely randomly.
Pair Corralation between Silver Hammer and Asante Gold
Assuming the 90 days horizon Silver Hammer Mining is expected to generate 11.89 times more return on investment than Asante Gold. However, Silver Hammer is 11.89 times more volatile than Asante Gold. It trades about 0.23 of its potential returns per unit of risk. Asante Gold is currently generating about 0.11 per unit of risk. If you would invest 3.98 in Silver Hammer Mining on November 28, 2024 and sell it today you would earn a total of 4.72 from holding Silver Hammer Mining or generate 118.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silver Hammer Mining vs. Asante Gold
Performance |
| Timeline |
| Silver Hammer Mining |
| Asante Gold |
Silver Hammer and Asante Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silver Hammer and Asante Gold
The main advantage of trading using opposite Silver Hammer and Asante Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silver Hammer position performs unexpectedly, Asante Gold 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 Asante Gold will offset losses from the drop in Asante Gold's long position.| Silver Hammer vs. Arizona Silver Exploration | Silver Hammer vs. Dolly Varden Silver | Silver Hammer vs. Reyna Silver Corp | Silver Hammer vs. Guanajuato Silver |
| Asante Gold vs. Minnova Corp | Asante Gold vs. Argo Gold | Asante Gold vs. Advance Gold Corp | Asante Gold vs. Blue Star 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |