Correlation Between Laurentian Bank and Avino Silver
Can any of the company-specific risk be diversified away by investing in both Laurentian Bank and Avino 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 Laurentian Bank and Avino Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Laurentian Bank and Avino Silver Gold, you can compare the effects of market volatilities on Laurentian Bank and Avino 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 Laurentian Bank with a short position of Avino Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Laurentian Bank and Avino Silver.
Diversification Opportunities for Laurentian Bank and Avino Silver
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Laurentian and Avino is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Laurentian Bank and Avino Silver Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avino Silver Gold and Laurentian Bank 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 Laurentian Bank are associated (or correlated) with Avino Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avino Silver Gold has no effect on the direction of Laurentian Bank i.e., Laurentian Bank and Avino Silver go up and down completely randomly.
Pair Corralation between Laurentian Bank and Avino Silver
Assuming the 90 days horizon Laurentian Bank is expected to generate 0.28 times more return on investment than Avino Silver. However, Laurentian Bank is 3.59 times less risky than Avino Silver. It trades about 0.52 of its potential returns per unit of risk. Avino Silver Gold is currently generating about -0.14 per unit of risk. If you would invest 2,644 in Laurentian Bank on September 4, 2024 and sell it today you would earn a total of 331.00 from holding Laurentian Bank or generate 12.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Laurentian Bank vs. Avino Silver Gold
Performance |
| Timeline |
| Laurentian Bank |
| Avino Silver Gold |
Laurentian Bank and Avino Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Laurentian Bank and Avino Silver
The main advantage of trading using opposite Laurentian Bank and Avino Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Laurentian Bank position performs unexpectedly, Avino 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 Avino Silver will offset losses from the drop in Avino Silver's long position.| Laurentian Bank vs. Canadian Western Bank | Laurentian Bank vs. National Bank of | Laurentian Bank vs. Canadian Imperial Bank | Laurentian Bank vs. Great West Lifeco |
| Avino Silver vs. Chemtrade Logistics Income | Avino Silver vs. SalesforceCom CDR | Avino Silver vs. Laurentian Bank | Avino Silver vs. Bank of Nova |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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