Correlation Between Santacruz Silv and SilverCrest Metals
Can any of the company-specific risk be diversified away by investing in both Santacruz Silv and SilverCrest Metals 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 SilverCrest Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Santacruz Silv and SilverCrest Metals, you can compare the effects of market volatilities on Santacruz Silv and SilverCrest Metals 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 SilverCrest Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santacruz Silv and SilverCrest Metals.
Diversification Opportunities for Santacruz Silv and SilverCrest Metals
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Santacruz and SilverCrest is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Santacruz Silv and SilverCrest Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SilverCrest Metals 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 SilverCrest Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SilverCrest Metals has no effect on the direction of Santacruz Silv i.e., Santacruz Silv and SilverCrest Metals go up and down completely randomly.
Pair Corralation between Santacruz Silv and SilverCrest Metals
Assuming the 90 days horizon Santacruz Silv is expected to generate 2.15 times more return on investment than SilverCrest Metals. However, Santacruz Silv is 2.15 times more volatile than SilverCrest Metals. It trades about 0.04 of its potential returns per unit of risk. SilverCrest Metals is currently generating about 0.07 per unit of risk. If you would invest 33.00 in Santacruz Silv on November 9, 2024 and sell it today you would earn a total of 6.00 from holding Santacruz Silv or generate 18.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Santacruz Silv vs. SilverCrest Metals
Performance |
| Timeline |
| Santacruz Silv |
| SilverCrest Metals |
Santacruz Silv and SilverCrest Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Santacruz Silv and SilverCrest Metals
The main advantage of trading using opposite Santacruz Silv and SilverCrest Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santacruz Silv position performs unexpectedly, SilverCrest Metals 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 SilverCrest Metals will offset losses from the drop in SilverCrest Metals' 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 |
| SilverCrest Metals vs. MAG Silver Corp | SilverCrest Metals vs. Pan American Silver | SilverCrest Metals vs. SSR Mining | SilverCrest Metals vs. Equinox Gold Corp |
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.
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