Correlation Between Silver Hammer and First Mining
Can any of the company-specific risk be diversified away by investing in both Silver Hammer and First Mining 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 First Mining 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 First Mining Gold, you can compare the effects of market volatilities on Silver Hammer and First Mining 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 First Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silver Hammer and First Mining.
Diversification Opportunities for Silver Hammer and First Mining
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Silver and First is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Silver Hammer Mining and First Mining Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Mining 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 First Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Mining Gold has no effect on the direction of Silver Hammer i.e., Silver Hammer and First Mining go up and down completely randomly.
Pair Corralation between Silver Hammer and First Mining
Assuming the 90 days horizon Silver Hammer Mining is expected to generate 2.97 times more return on investment than First Mining. However, Silver Hammer is 2.97 times more volatile than First Mining Gold. It trades about 0.03 of its potential returns per unit of risk. First Mining Gold is currently generating about -0.01 per unit of risk. If you would invest 4.00 in Silver Hammer Mining on August 29, 2024 and sell it today you would lose (1.00) from holding Silver Hammer Mining or give up 25.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Silver Hammer Mining vs. First Mining Gold
Performance |
| Timeline |
| Silver Hammer Mining |
| First Mining Gold |
Silver Hammer and First Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silver Hammer and First Mining
The main advantage of trading using opposite Silver Hammer and First Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silver Hammer position performs unexpectedly, First Mining 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 First Mining will offset losses from the drop in First Mining'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 |
| First Mining vs. Silver Hammer Mining | First Mining vs. Reyna Silver Corp | First Mining vs. Guanajuato Silver | First Mining 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 Stocks Directory module to find actively traded stocks across global markets.
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