Correlation Between SilverCrest Metals and Ascot Resources
Can any of the company-specific risk be diversified away by investing in both SilverCrest Metals and Ascot Resources 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 SilverCrest Metals and Ascot Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SilverCrest Metals and Ascot Resources, you can compare the effects of market volatilities on SilverCrest Metals and Ascot Resources 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 SilverCrest Metals with a short position of Ascot Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of SilverCrest Metals and Ascot Resources.
Diversification Opportunities for SilverCrest Metals and Ascot Resources
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SilverCrest and Ascot is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding SilverCrest Metals and Ascot Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascot Resources and SilverCrest Metals 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 SilverCrest Metals are associated (or correlated) with Ascot Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascot Resources has no effect on the direction of SilverCrest Metals i.e., SilverCrest Metals and Ascot Resources go up and down completely randomly.
Pair Corralation between SilverCrest Metals and Ascot Resources
Assuming the 90 days trading horizon SilverCrest Metals is expected to generate 0.54 times more return on investment than Ascot Resources. However, SilverCrest Metals is 1.84 times less risky than Ascot Resources. It trades about 0.05 of its potential returns per unit of risk. Ascot Resources is currently generating about 0.01 per unit of risk. If you would invest 891.00 in SilverCrest Metals on September 2, 2024 and sell it today you would earn a total of 547.00 from holding SilverCrest Metals or generate 61.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SilverCrest Metals vs. Ascot Resources
Performance |
| Timeline |
| SilverCrest Metals |
| Ascot Resources |
SilverCrest Metals and Ascot Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SilverCrest Metals and Ascot Resources
The main advantage of trading using opposite SilverCrest Metals and Ascot Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SilverCrest Metals position performs unexpectedly, Ascot Resources 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 Ascot Resources will offset losses from the drop in Ascot Resources' long position.| SilverCrest Metals vs. Minaurum Gold | SilverCrest Metals vs. Dolly Varden Silver | SilverCrest Metals vs. Santacruz Silv | SilverCrest Metals vs. GoGold Resources |
| Ascot Resources vs. Western Investment | Ascot Resources vs. Canlan Ice Sports | Ascot Resources vs. Atrium Mortgage Investment | Ascot Resources vs. Pembina Pipeline 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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