Correlation Between MAG Silver and Slate Grocery
Can any of the company-specific risk be diversified away by investing in both MAG Silver and Slate Grocery 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 MAG Silver and Slate Grocery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAG Silver Corp and Slate Grocery REIT, you can compare the effects of market volatilities on MAG Silver and Slate Grocery 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 MAG Silver with a short position of Slate Grocery. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAG Silver and Slate Grocery.
Diversification Opportunities for MAG Silver and Slate Grocery
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MAG and Slate is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding MAG Silver Corp and Slate Grocery REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Slate Grocery REIT and MAG 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 MAG Silver Corp are associated (or correlated) with Slate Grocery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Slate Grocery REIT has no effect on the direction of MAG Silver i.e., MAG Silver and Slate Grocery go up and down completely randomly.
Pair Corralation between MAG Silver and Slate Grocery
Assuming the 90 days trading horizon MAG Silver Corp is expected to generate 1.54 times more return on investment than Slate Grocery. However, MAG Silver is 1.54 times more volatile than Slate Grocery REIT. It trades about 0.01 of its potential returns per unit of risk. Slate Grocery REIT is currently generating about 0.0 per unit of risk. If you would invest 2,170 in MAG Silver Corp on September 24, 2024 and sell it today you would lose (183.00) from holding MAG Silver Corp or give up 8.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
MAG Silver Corp vs. Slate Grocery REIT
Performance |
| Timeline |
| MAG Silver Corp |
| Slate Grocery REIT |
MAG Silver and Slate Grocery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAG Silver and Slate Grocery
The main advantage of trading using opposite MAG Silver and Slate Grocery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAG Silver position performs unexpectedly, Slate Grocery 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 Slate Grocery will offset losses from the drop in Slate Grocery's long position.| MAG Silver vs. Pan American Silver | MAG Silver vs. Endeavour Silver Corp | MAG Silver vs. SSR Mining | MAG Silver vs. Osisko Gold Ro |
| Slate Grocery vs. MAG Silver Corp | Slate Grocery vs. Blackrock Silver Corp | Slate Grocery vs. Globex Mining Enterprises | Slate Grocery vs. Advent Wireless |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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