Correlation Between Kootenay Silver and Silver Hammer
Can any of the company-specific risk be diversified away by investing in both Kootenay Silver and Silver Hammer 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 Kootenay Silver and Silver Hammer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kootenay Silver and Silver Hammer Mining, you can compare the effects of market volatilities on Kootenay Silver and Silver Hammer 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 Kootenay Silver with a short position of Silver Hammer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kootenay Silver and Silver Hammer.
Diversification Opportunities for Kootenay Silver and Silver Hammer
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kootenay and Silver is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Kootenay Silver and Silver Hammer Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver Hammer Mining and Kootenay Silver 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 Kootenay Silver are associated (or correlated) with Silver Hammer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver Hammer Mining has no effect on the direction of Kootenay Silver i.e., Kootenay Silver and Silver Hammer go up and down completely randomly.
Pair Corralation between Kootenay Silver and Silver Hammer
Assuming the 90 days horizon Kootenay Silver is expected to generate 0.8 times more return on investment than Silver Hammer. However, Kootenay Silver is 1.25 times less risky than Silver Hammer. It trades about 0.03 of its potential returns per unit of risk. Silver Hammer Mining is currently generating about 0.01 per unit of risk. If you would invest 130.00 in Kootenay Silver on August 28, 2024 and sell it today you would lose (55.00) from holding Kootenay Silver or give up 42.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Kootenay Silver vs. Silver Hammer Mining
Performance |
| Timeline |
| Kootenay Silver |
| Silver Hammer Mining |
Kootenay Silver and Silver Hammer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kootenay Silver and Silver Hammer
The main advantage of trading using opposite Kootenay Silver and Silver Hammer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kootenay Silver position performs unexpectedly, Silver Hammer 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 Silver Hammer will offset losses from the drop in Silver Hammer's long position.| Kootenay Silver vs. Silver One Resources | Kootenay Silver vs. Reyna Silver Corp | Kootenay Silver vs. Dolly Varden Silver | Kootenay Silver vs. IMPACT Silver Corp |
| Silver Hammer vs. Bald Eagle Gold | Silver Hammer vs. Silver One Resources | Silver Hammer vs. Dolly Varden Silver | Silver Hammer vs. Kootenay Silver |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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