Correlation Between Iluka Resources and Aftermath Silver
Can any of the company-specific risk be diversified away by investing in both Iluka Resources and Aftermath 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 Iluka Resources and Aftermath Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iluka Resources Ltd and Aftermath Silver, you can compare the effects of market volatilities on Iluka Resources and Aftermath 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 Iluka Resources with a short position of Aftermath Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iluka Resources and Aftermath Silver.
Diversification Opportunities for Iluka Resources and Aftermath Silver
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Iluka and Aftermath is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Iluka Resources Ltd and Aftermath Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aftermath Silver and Iluka Resources 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 Iluka Resources Ltd are associated (or correlated) with Aftermath Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aftermath Silver has no effect on the direction of Iluka Resources i.e., Iluka Resources and Aftermath Silver go up and down completely randomly.
Pair Corralation between Iluka Resources and Aftermath Silver
Assuming the 90 days horizon Iluka Resources Ltd is expected to under-perform the Aftermath Silver. But the pink sheet apears to be less risky and, when comparing its historical volatility, Iluka Resources Ltd is 1.49 times less risky than Aftermath Silver. The pink sheet trades about -0.13 of its potential returns per unit of risk. The Aftermath Silver is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 34.00 in Aftermath Silver on November 29, 2024 and sell it today you would lose (1.00) from holding Aftermath Silver or give up 2.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iluka Resources Ltd vs. Aftermath Silver
Performance |
| Timeline |
| Iluka Resources |
| Aftermath Silver |
Iluka Resources and Aftermath Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iluka Resources and Aftermath Silver
The main advantage of trading using opposite Iluka Resources and Aftermath Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iluka Resources position performs unexpectedly, Aftermath 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 Aftermath Silver will offset losses from the drop in Aftermath Silver's long position.| Iluka Resources vs. ERAMET SA | Iluka Resources vs. Giyani Metals Corp | Iluka Resources vs. IGO Limited | Iluka Resources vs. Grid Metals Corp |
| Aftermath Silver vs. Ascendant Resources | Aftermath Silver vs. Nevada King Gold | Aftermath Silver vs. Fathom Nickel | Aftermath Silver vs. Wallbridge 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 Stocks Directory module to find actively traded stocks across global markets.
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