Correlation Between SSR Mining and Dundee Precious
Can any of the company-specific risk be diversified away by investing in both SSR Mining and Dundee Precious 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 SSR Mining and Dundee Precious into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSR Mining and Dundee Precious Metals, you can compare the effects of market volatilities on SSR Mining and Dundee Precious 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 SSR Mining with a short position of Dundee Precious. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSR Mining and Dundee Precious.
Diversification Opportunities for SSR Mining and Dundee Precious
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SSR and Dundee is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding SSR Mining and Dundee Precious Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dundee Precious Metals and SSR Mining 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 SSR Mining are associated (or correlated) with Dundee Precious. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dundee Precious Metals has no effect on the direction of SSR Mining i.e., SSR Mining and Dundee Precious go up and down completely randomly.
Pair Corralation between SSR Mining and Dundee Precious
Assuming the 90 days trading horizon SSR Mining is expected to under-perform the Dundee Precious. In addition to that, SSR Mining is 2.14 times more volatile than Dundee Precious Metals. It trades about -0.08 of its total potential returns per unit of risk. Dundee Precious Metals is currently generating about -0.16 per unit of volatility. If you would invest 1,400 in Dundee Precious Metals on August 29, 2024 and sell it today you would lose (96.00) from holding Dundee Precious Metals or give up 6.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSR Mining vs. Dundee Precious Metals
Performance |
| Timeline |
| SSR Mining |
| Dundee Precious Metals |
SSR Mining and Dundee Precious Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSR Mining and Dundee Precious
The main advantage of trading using opposite SSR Mining and Dundee Precious positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSR Mining position performs unexpectedly, Dundee Precious 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 Dundee Precious will offset losses from the drop in Dundee Precious' long position.| SSR Mining vs. Pan American Silver | SSR Mining vs. MAG Silver Corp | SSR Mining vs. Osisko Gold Ro | SSR Mining vs. Sandstorm Gold Ltd |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |