Correlation Between Silver Dollar and Ascot Resources
Can any of the company-specific risk be diversified away by investing in both Silver Dollar 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 Silver Dollar and Ascot Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silver Dollar Resources and Ascot Resources, you can compare the effects of market volatilities on Silver Dollar 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 Silver Dollar with a short position of Ascot Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silver Dollar and Ascot Resources.
Diversification Opportunities for Silver Dollar and Ascot Resources
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Silver and Ascot is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Silver Dollar Resources and Ascot Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascot Resources and Silver Dollar 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 Silver Dollar Resources 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 Silver Dollar i.e., Silver Dollar and Ascot Resources go up and down completely randomly.
Pair Corralation between Silver Dollar and Ascot Resources
Assuming the 90 days horizon Silver Dollar Resources is expected to generate 0.97 times more return on investment than Ascot Resources. However, Silver Dollar Resources is 1.03 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 -0.04 per unit of risk. If you would invest 18.00 in Silver Dollar Resources on September 1, 2024 and sell it today you would earn a total of 6.00 from holding Silver Dollar Resources or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silver Dollar Resources vs. Ascot Resources
Performance |
| Timeline |
| Silver Dollar Resources |
| Ascot Resources |
Silver Dollar and Ascot Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silver Dollar and Ascot Resources
The main advantage of trading using opposite Silver Dollar and Ascot Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silver Dollar 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.| Silver Dollar vs. O3 Mining | Silver Dollar vs. Aftermath Silver | Silver Dollar vs. Nevada King Gold | Silver Dollar vs. Canstar Resources |
| Ascot Resources vs. South32 Limited | Ascot Resources vs. NioCorp Developments Ltd | Ascot Resources vs. HUMANA INC | Ascot Resources 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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