Correlation Between SSR Mining and Pan American
Can any of the company-specific risk be diversified away by investing in both SSR Mining and Pan American 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 Pan American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSR Mining and Pan American Silver, you can compare the effects of market volatilities on SSR Mining and Pan American 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 Pan American. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSR Mining and Pan American.
Diversification Opportunities for SSR Mining and Pan American
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SSR and Pan is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding SSR Mining and Pan American Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pan American Silver 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 Pan American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pan American Silver has no effect on the direction of SSR Mining i.e., SSR Mining and Pan American go up and down completely randomly.
Pair Corralation between SSR Mining and Pan American
Assuming the 90 days trading horizon SSR Mining is expected to under-perform the Pan American. In addition to that, SSR Mining is 1.39 times more volatile than Pan American Silver. It trades about -0.03 of its total potential returns per unit of risk. Pan American Silver is currently generating about 0.04 per unit of volatility. If you would invest 2,238 in Pan American Silver on August 28, 2024 and sell it today you would earn a total of 801.00 from holding Pan American Silver or generate 35.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSR Mining vs. Pan American Silver
Performance |
| Timeline |
| SSR Mining |
| Pan American Silver |
SSR Mining and Pan American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSR Mining and Pan American
The main advantage of trading using opposite SSR Mining and Pan American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSR Mining position performs unexpectedly, Pan American 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 Pan American will offset losses from the drop in Pan American's 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 |
| Pan American vs. Firan Technology Group | Pan American vs. SalesforceCom CDR | Pan American vs. Hemisphere Energy | Pan American vs. Oculus VisionTech |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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