Correlation Between Postmedia Network and Avino Silver
Can any of the company-specific risk be diversified away by investing in both Postmedia Network 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 Postmedia Network and Avino Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Postmedia Network Canada and Avino Silver Gold, you can compare the effects of market volatilities on Postmedia Network 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 Postmedia Network with a short position of Avino Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postmedia Network and Avino Silver.
Diversification Opportunities for Postmedia Network and Avino Silver
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Postmedia and Avino is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Postmedia Network Canada 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 Postmedia Network 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 Postmedia Network Canada 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 Postmedia Network i.e., Postmedia Network and Avino Silver go up and down completely randomly.
Pair Corralation between Postmedia Network and Avino Silver
Assuming the 90 days trading horizon Postmedia Network Canada is expected to generate 0.57 times more return on investment than Avino Silver. However, Postmedia Network Canada is 1.76 times less risky than Avino Silver. It trades about 0.01 of its potential returns per unit of risk. Avino Silver Gold is currently generating about -0.29 per unit of risk. If you would invest 132.00 in Postmedia Network Canada on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Postmedia Network Canada or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Postmedia Network Canada vs. Avino Silver Gold
Performance |
| Timeline |
| Postmedia Network Canada |
| Avino Silver Gold |
Postmedia Network and Avino Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postmedia Network and Avino Silver
The main advantage of trading using opposite Postmedia Network and Avino Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postmedia Network 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.| Postmedia Network vs. Converge Technology Solutions | Postmedia Network vs. High Liner Foods | Postmedia Network vs. Constellation Software | Postmedia Network vs. Questor Technology |
| Avino Silver vs. Metalero Mining Corp | Avino Silver vs. Canso Select Opportunities | Avino Silver vs. Rogers Communications | Avino Silver vs. Data Communications Management |
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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