Correlation Between Santacruz Silv and American Creek
Can any of the company-specific risk be diversified away by investing in both Santacruz Silv and American Creek 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 Santacruz Silv and American Creek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Santacruz Silv and American Creek Resources, you can compare the effects of market volatilities on Santacruz Silv and American Creek 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 Santacruz Silv with a short position of American Creek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santacruz Silv and American Creek.
Diversification Opportunities for Santacruz Silv and American Creek
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Santacruz and American is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Santacruz Silv and American Creek Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Creek Resources and Santacruz Silv 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 Santacruz Silv are associated (or correlated) with American Creek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Creek Resources has no effect on the direction of Santacruz Silv i.e., Santacruz Silv and American Creek go up and down completely randomly.
Pair Corralation between Santacruz Silv and American Creek
Assuming the 90 days horizon Santacruz Silv is expected to under-perform the American Creek. But the stock apears to be less risky and, when comparing its historical volatility, Santacruz Silv is 1.71 times less risky than American Creek. The stock trades about -0.01 of its potential returns per unit of risk. The American Creek Resources is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 12.00 in American Creek Resources on September 3, 2024 and sell it today you would earn a total of 18.00 from holding American Creek Resources or generate 150.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Santacruz Silv vs. American Creek Resources
Performance |
| Timeline |
| Santacruz Silv |
| American Creek Resources |
Santacruz Silv and American Creek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Santacruz Silv and American Creek
The main advantage of trading using opposite Santacruz Silv and American Creek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santacruz Silv position performs unexpectedly, American Creek 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 American Creek will offset losses from the drop in American Creek's long position.| Santacruz Silv vs. Defiance Silver Corp | Santacruz Silv vs. Southern Silver Exploration | Santacruz Silv vs. AbraSilver Resource Corp | Santacruz Silv vs. CMC Metals |
| American Creek vs. Teuton Resources Corp | American Creek vs. Kore Mining | American Creek vs. Endurance Gold Corp | American Creek vs. Strikepoint Gold |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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