Correlation Between Reyna Silver Corp and Jaguar Mining
Can any of the company-specific risk be diversified away by investing in both Reyna Silver Corp and Jaguar Mining 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 Reyna Silver Corp and Jaguar Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Reyna Silver Corp and Jaguar Mining, you can compare the effects of market volatilities on Reyna Silver Corp and Jaguar Mining 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 Reyna Silver Corp with a short position of Jaguar Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Reyna Silver Corp and Jaguar Mining.
Diversification Opportunities for Reyna Silver Corp and Jaguar Mining
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Reyna and Jaguar is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Reyna Silver Corp and Jaguar Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaguar Mining and Reyna Silver Corp 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 Reyna Silver Corp are associated (or correlated) with Jaguar Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaguar Mining has no effect on the direction of Reyna Silver Corp i.e., Reyna Silver Corp and Jaguar Mining go up and down completely randomly.
Pair Corralation between Reyna Silver Corp and Jaguar Mining
Assuming the 90 days horizon Reyna Silver Corp is expected to generate 3.68 times less return on investment than Jaguar Mining. In addition to that, Reyna Silver Corp is 1.49 times more volatile than Jaguar Mining. It trades about 0.02 of its total potential returns per unit of risk. Jaguar Mining is currently generating about 0.1 per unit of volatility. If you would invest 149.00 in Jaguar Mining on September 1, 2024 and sell it today you would earn a total of 120.00 from holding Jaguar Mining or generate 80.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Reyna Silver Corp vs. Jaguar Mining
Performance |
| Timeline |
| Reyna Silver Corp |
| Jaguar Mining |
Reyna Silver Corp and Jaguar Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Reyna Silver Corp and Jaguar Mining
The main advantage of trading using opposite Reyna Silver Corp and Jaguar Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Reyna Silver Corp position performs unexpectedly, Jaguar Mining 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 Jaguar Mining will offset losses from the drop in Jaguar Mining's long position.| Reyna Silver Corp vs. Bald Eagle Gold | Reyna Silver Corp vs. Arizona Silver Exploration | Reyna Silver Corp vs. Silver One Resources | Reyna Silver Corp vs. Discovery Metals Corp |
| Jaguar Mining vs. South32 Limited | Jaguar Mining vs. NioCorp Developments Ltd | Jaguar Mining vs. HUMANA INC | Jaguar Mining vs. SCOR PK |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |