Correlation Between Group Ten and Aftermath Silver
Can any of the company-specific risk be diversified away by investing in both Group Ten 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 Group Ten and Aftermath Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Group Ten Metals and Aftermath Silver, you can compare the effects of market volatilities on Group Ten 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 Group Ten with a short position of Aftermath Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Group Ten and Aftermath Silver.
Diversification Opportunities for Group Ten and Aftermath Silver
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Group and Aftermath is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Group Ten Metals and Aftermath Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aftermath Silver and Group Ten 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 Group Ten Metals 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 Group Ten i.e., Group Ten and Aftermath Silver go up and down completely randomly.
Pair Corralation between Group Ten and Aftermath Silver
Assuming the 90 days horizon Group Ten is expected to generate 4.21 times less return on investment than Aftermath Silver. But when comparing it to its historical volatility, Group Ten Metals is 1.02 times less risky than Aftermath Silver. It trades about 0.01 of its potential returns per unit of risk. Aftermath Silver is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 17.00 in Aftermath Silver on August 31, 2024 and sell it today you would earn a total of 18.00 from holding Aftermath Silver or generate 105.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Group Ten Metals vs. Aftermath Silver
Performance |
| Timeline |
| Group Ten Metals |
| Aftermath Silver |
Group Ten and Aftermath Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Group Ten and Aftermath Silver
The main advantage of trading using opposite Group Ten and Aftermath Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Group Ten 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.| Group Ten vs. Ascendant Resources | Group Ten vs. Atico Mining | Group Ten vs. Prime Mining Corp | Group Ten vs. Wallbridge Mining |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |