Correlation Between SSR Mining and SilverCrest Metals
Can any of the company-specific risk be diversified away by investing in both SSR Mining 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 SSR Mining and SilverCrest Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSR Mining and SilverCrest Metals, you can compare the effects of market volatilities on SSR Mining 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 SSR Mining with a short position of SilverCrest Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSR Mining and SilverCrest Metals.
Diversification Opportunities for SSR Mining and SilverCrest Metals
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SSR and SilverCrest is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding SSR Mining and SilverCrest Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SilverCrest 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 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 SSR Mining i.e., SSR Mining and SilverCrest Metals go up and down completely randomly.
Pair Corralation between SSR Mining and SilverCrest Metals
Assuming the 90 days trading horizon SSR Mining is expected to under-perform the SilverCrest Metals. In addition to that, SSR Mining is 1.17 times more volatile than SilverCrest Metals. It trades about -0.03 of its total potential returns per unit of risk. SilverCrest Metals is currently generating about 0.03 per unit of volatility. If you would invest 1,421 in SilverCrest Metals on September 1, 2024 and sell it today you would earn a total of 17.00 from holding SilverCrest Metals or generate 1.2% 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. SilverCrest Metals
Performance |
| Timeline |
| SSR Mining |
| SilverCrest Metals |
SSR Mining and SilverCrest Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSR Mining and SilverCrest Metals
The main advantage of trading using opposite SSR Mining and SilverCrest Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSR Mining 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.| SSR Mining vs. Pan American Silver | SSR Mining vs. MAG Silver Corp | SSR Mining vs. Osisko Gold Ro | SSR Mining vs. Sandstorm Gold Ltd |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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