Correlation Between Silver Hammer and Northern Graphite
Can any of the company-specific risk be diversified away by investing in both Silver Hammer and Northern Graphite 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 Northern Graphite 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 Northern Graphite, you can compare the effects of market volatilities on Silver Hammer and Northern Graphite 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 Northern Graphite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silver Hammer and Northern Graphite.
Diversification Opportunities for Silver Hammer and Northern Graphite
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Silver and Northern is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Silver Hammer Mining and Northern Graphite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Graphite 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 Northern Graphite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Graphite has no effect on the direction of Silver Hammer i.e., Silver Hammer and Northern Graphite go up and down completely randomly.
Pair Corralation between Silver Hammer and Northern Graphite
Assuming the 90 days horizon Silver Hammer Mining is expected to generate 4.32 times more return on investment than Northern Graphite. However, Silver Hammer is 4.32 times more volatile than Northern Graphite. It trades about 0.23 of its potential returns per unit of risk. Northern Graphite is currently generating about -0.05 per unit of risk. If you would invest 3.98 in Silver Hammer Mining on November 28, 2024 and sell it today you would earn a total of 4.72 from holding Silver Hammer Mining or generate 118.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silver Hammer Mining vs. Northern Graphite
Performance |
| Timeline |
| Silver Hammer Mining |
| Northern Graphite |
Silver Hammer and Northern Graphite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silver Hammer and Northern Graphite
The main advantage of trading using opposite Silver Hammer and Northern Graphite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silver Hammer position performs unexpectedly, Northern Graphite 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 Northern Graphite will offset losses from the drop in Northern Graphite'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 |
| Northern Graphite vs. Focus Graphite | Northern Graphite vs. Mason Graphite | Northern Graphite vs. Graphite One | Northern Graphite vs. Syrah Resources Limited |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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