Correlation Between Silver Hammer and Lion One
Can any of the company-specific risk be diversified away by investing in both Silver Hammer and Lion One 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 Lion One 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 Lion One Metals, you can compare the effects of market volatilities on Silver Hammer and Lion One 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 Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silver Hammer and Lion One.
Diversification Opportunities for Silver Hammer and Lion One
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Silver and Lion is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Silver Hammer Mining and Lion One Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion One Metals 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 Lion One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion One Metals has no effect on the direction of Silver Hammer i.e., Silver Hammer and Lion One go up and down completely randomly.
Pair Corralation between Silver Hammer and Lion One
Assuming the 90 days horizon Silver Hammer Mining is expected to generate 6.04 times more return on investment than Lion One. However, Silver Hammer is 6.04 times more volatile than Lion One Metals. It trades about 0.19 of its potential returns per unit of risk. Lion One Metals is currently generating about -0.07 per unit of risk. If you would invest 3.98 in Silver Hammer Mining on November 27, 2024 and sell it today you would earn a total of 2.32 from holding Silver Hammer Mining or generate 58.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Silver Hammer Mining vs. Lion One Metals
Performance |
| Timeline |
| Silver Hammer Mining |
| Lion One Metals |
Silver Hammer and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silver Hammer and Lion One
The main advantage of trading using opposite Silver Hammer and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silver Hammer position performs unexpectedly, Lion One 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 Lion One will offset losses from the drop in Lion One'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 |
| Lion One vs. Irving Resources | Lion One vs. Headwater Gold | Lion One vs. Novo Resources Corp | Lion One vs. Snowline Gold Corp |
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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