Correlation Between Maple Gold and Fortuna Silver
Can any of the company-specific risk be diversified away by investing in both Maple Gold 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 Maple Gold and Fortuna Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maple Gold Mines and Fortuna Silver Mines, you can compare the effects of market volatilities on Maple Gold 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 Maple Gold with a short position of Fortuna Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Gold and Fortuna Silver.
Diversification Opportunities for Maple Gold and Fortuna Silver
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Maple and Fortuna is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Maple Gold Mines 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 Maple Gold 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 Maple Gold Mines 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 Maple Gold i.e., Maple Gold and Fortuna Silver go up and down completely randomly.
Pair Corralation between Maple Gold and Fortuna Silver
Assuming the 90 days horizon Maple Gold is expected to generate 11.07 times less return on investment than Fortuna Silver. In addition to that, Maple Gold is 1.75 times more volatile than Fortuna Silver Mines. It trades about 0.0 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 374.00 in Fortuna Silver Mines on September 2, 2024 and sell it today you would earn a total of 104.00 from holding Fortuna Silver Mines or generate 27.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maple Gold Mines vs. Fortuna Silver Mines
Performance |
| Timeline |
| Maple Gold Mines |
| Fortuna Silver Mines |
Maple Gold and Fortuna Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maple Gold and Fortuna Silver
The main advantage of trading using opposite Maple Gold and Fortuna Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple Gold 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.| Maple Gold vs. Steppe Gold | Maple Gold vs. Caledonia Mining | Maple Gold vs. Fortuna Silver Mines | Maple Gold vs. Sandstorm Gold Ltd |
| Fortuna Silver vs. Fortitude Gold Corp | Fortuna Silver vs. New Gold | Fortuna Silver vs. Galiano Gold | Fortuna Silver vs. GoldMining |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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