Correlation Between I 80 and Fortuna Silver
Can any of the company-specific risk be diversified away by investing in both I 80 and Fortuna Silver 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 I 80 and Fortuna Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between I 80 Gold Corp and Fortuna Silver Mines, you can compare the effects of market volatilities on I 80 and Fortuna Silver 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 I 80 with a short position of Fortuna Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of I 80 and Fortuna Silver.
Diversification Opportunities for I 80 and Fortuna Silver
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IAUX and Fortuna is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding I 80 Gold Corp and Fortuna Silver Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortuna Silver Mines and I 80 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 I 80 Gold Corp are associated (or correlated) with Fortuna Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortuna Silver Mines has no effect on the direction of I 80 i.e., I 80 and Fortuna Silver go up and down completely randomly.
Pair Corralation between I 80 and Fortuna Silver
Given the investment horizon of 90 days I 80 Gold Corp is expected to under-perform the Fortuna Silver. In addition to that, I 80 is 1.56 times more volatile than Fortuna Silver Mines. It trades about -0.02 of its total potential returns per unit of risk. Fortuna Silver Mines is currently generating about 0.05 per unit of volatility. If you would invest 323.00 in Fortuna Silver Mines on November 19, 2024 and sell it today you would earn a total of 192.00 from holding Fortuna Silver Mines or generate 59.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
I 80 Gold Corp vs. Fortuna Silver Mines
Performance |
| Timeline |
| I 80 Gold |
| Fortuna Silver Mines |
I 80 and Fortuna Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with I 80 and Fortuna Silver
The main advantage of trading using opposite I 80 and Fortuna Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if I 80 position performs unexpectedly, Fortuna Silver 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 Fortuna Silver will offset losses from the drop in Fortuna Silver's long position.| I 80 vs. K92 Mining | I 80 vs. Wesdome Gold Mines | I 80 vs. Fortuna Silver Mines | I 80 vs. Sandstorm Gold Ltd |
| Fortuna Silver vs. Pan American Silver | Fortuna Silver vs. Harmony Gold Mining | Fortuna Silver vs. IAMGold | Fortuna Silver vs. Kinross Gold |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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