Correlation Between Silver Hammer and Benton Resources
Can any of the company-specific risk be diversified away by investing in both Silver Hammer and Benton Resources 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 Benton Resources 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 Benton Resources, you can compare the effects of market volatilities on Silver Hammer and Benton Resources 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 Benton Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silver Hammer and Benton Resources.
Diversification Opportunities for Silver Hammer and Benton Resources
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Silver and Benton is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Silver Hammer Mining and Benton Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benton Resources 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 Benton Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benton Resources has no effect on the direction of Silver Hammer i.e., Silver Hammer and Benton Resources go up and down completely randomly.
Pair Corralation between Silver Hammer and Benton Resources
Assuming the 90 days horizon Silver Hammer Mining is expected to under-perform the Benton Resources. In addition to that, Silver Hammer is 1.01 times more volatile than Benton Resources. It trades about -0.06 of its total potential returns per unit of risk. Benton Resources is currently generating about 0.11 per unit of volatility. If you would invest 5.75 in Benton Resources on August 29, 2024 and sell it today you would earn a total of 0.79 from holding Benton Resources or generate 13.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silver Hammer Mining vs. Benton Resources
Performance |
| Timeline |
| Silver Hammer Mining |
| Benton Resources |
Silver Hammer and Benton Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silver Hammer and Benton Resources
The main advantage of trading using opposite Silver Hammer and Benton Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silver Hammer position performs unexpectedly, Benton Resources 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 Benton Resources will offset losses from the drop in Benton Resources' 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 |
| Benton Resources vs. Silver Hammer Mining | Benton Resources vs. Reyna Silver Corp | Benton Resources vs. Guanajuato Silver | Benton Resources vs. Silver One Resources |
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 CEOs Directory module to screen CEOs from public companies around the world.
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