Correlation Between SSR Mining and Century Aluminum

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both SSR Mining and Century Aluminum 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 Century Aluminum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSR Mining and Century Aluminum, you can compare the effects of market volatilities on SSR Mining and Century Aluminum 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 Century Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSR Mining and Century Aluminum.

Diversification Opportunities for SSR Mining and Century Aluminum

-0.11
  Correlation Coefficient

Good diversification

The 3 months correlation between SSR and Century is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding SSR Mining and Century Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Century Aluminum 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 Century Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Century Aluminum has no effect on the direction of SSR Mining i.e., SSR Mining and Century Aluminum go up and down completely randomly.

Pair Corralation between SSR Mining and Century Aluminum

Given the investment horizon of 90 days SSR Mining is expected to generate 0.75 times more return on investment than Century Aluminum. However, SSR Mining is 1.34 times less risky than Century Aluminum. It trades about -0.06 of its potential returns per unit of risk. Century Aluminum is currently generating about -0.16 per unit of risk. If you would invest  766.00  in SSR Mining on October 13, 2024 and sell it today you would lose (24.00) from holding SSR Mining or give up 3.13% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

SSR Mining  vs.  Century Aluminum

 Performance 
       Timeline  
SSR Mining 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in SSR Mining are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, SSR Mining displayed solid returns over the last few months and may actually be approaching a breakup point.
Century Aluminum 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Century Aluminum are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Century Aluminum showed solid returns over the last few months and may actually be approaching a breakup point.

SSR Mining and Century Aluminum Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with SSR Mining and Century Aluminum

The main advantage of trading using opposite SSR Mining and Century Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSR Mining position performs unexpectedly, Century Aluminum 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 Century Aluminum will offset losses from the drop in Century Aluminum's long position.
The idea behind SSR Mining and Century Aluminum pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

Other Complementary Tools

Share Portfolio
Track or share privately all of your investments from the convenience of any device
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope