Correlation Between Silver Hammer and Canfor
Can any of the company-specific risk be diversified away by investing in both Silver Hammer and Canfor 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 Canfor 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 Canfor, you can compare the effects of market volatilities on Silver Hammer and Canfor 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 Canfor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silver Hammer and Canfor.
Diversification Opportunities for Silver Hammer and Canfor
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Silver and Canfor is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Silver Hammer Mining and Canfor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canfor 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 Canfor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canfor has no effect on the direction of Silver Hammer i.e., Silver Hammer and Canfor go up and down completely randomly.
Pair Corralation between Silver Hammer and Canfor
Assuming the 90 days horizon Silver Hammer Mining is expected to generate 7.21 times more return on investment than Canfor. However, Silver Hammer is 7.21 times more volatile than Canfor. It trades about 0.05 of its potential returns per unit of risk. Canfor is currently generating about -0.02 per unit of risk. If you would invest 25.00 in Silver Hammer Mining on November 27, 2024 and sell it today you would lose (18.70) from holding Silver Hammer Mining or give up 74.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.37% |
| Values | Daily Returns |
Silver Hammer Mining vs. Canfor
Performance |
| Timeline |
| Silver Hammer Mining |
| Canfor |
Silver Hammer and Canfor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silver Hammer and Canfor
The main advantage of trading using opposite Silver Hammer and Canfor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silver Hammer position performs unexpectedly, Canfor 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 Canfor will offset losses from the drop in Canfor'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 |
| Canfor vs. Conifex Timber | Canfor vs. GreenFirst Forest Products | Canfor vs. West Fraser Timber | Canfor vs. Ufp Industries |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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