Correlation Between Silver Hammer and Themac Resources
Can any of the company-specific risk be diversified away by investing in both Silver Hammer and Themac 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 Themac 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 Themac Resources Group, you can compare the effects of market volatilities on Silver Hammer and Themac 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 Themac Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silver Hammer and Themac Resources.
Diversification Opportunities for Silver Hammer and Themac Resources
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Silver and Themac is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Silver Hammer Mining and Themac Resources Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Themac 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 Themac Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Themac Resources has no effect on the direction of Silver Hammer i.e., Silver Hammer and Themac Resources go up and down completely randomly.
Pair Corralation between Silver Hammer and Themac Resources
Assuming the 90 days horizon Silver Hammer Mining is expected to generate 2.52 times more return on investment than Themac Resources. However, Silver Hammer is 2.52 times more volatile than Themac Resources Group. It trades about 0.19 of its potential returns per unit of risk. Themac Resources Group is currently generating about 0.29 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 | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Silver Hammer Mining vs. Themac Resources Group
Performance |
| Timeline |
| Silver Hammer Mining |
| Themac Resources |
Silver Hammer and Themac Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silver Hammer and Themac Resources
The main advantage of trading using opposite Silver Hammer and Themac Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silver Hammer position performs unexpectedly, Themac 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 Themac Resources will offset losses from the drop in Themac 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 |
| Themac Resources vs. Commander Resources | Themac Resources vs. East Africa Metals | Themac Resources vs. Forsys Metals Corp | Themac Resources vs. American CuMo Mining |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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