Correlation Between Summa Silver and Canadian Imperial
Can any of the company-specific risk be diversified away by investing in both Summa Silver and Canadian Imperial 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 Summa Silver and Canadian Imperial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summa Silver Corp and Canadian Imperial Bank, you can compare the effects of market volatilities on Summa Silver and Canadian Imperial 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 Summa Silver with a short position of Canadian Imperial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summa Silver and Canadian Imperial.
Diversification Opportunities for Summa Silver and Canadian Imperial
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Summa and Canadian is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Summa Silver Corp and Canadian Imperial Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Imperial Bank and Summa Silver 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 Summa Silver Corp are associated (or correlated) with Canadian Imperial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian Imperial Bank has no effect on the direction of Summa Silver i.e., Summa Silver and Canadian Imperial go up and down completely randomly.
Pair Corralation between Summa Silver and Canadian Imperial
Assuming the 90 days trading horizon Summa Silver Corp is expected to generate 12.69 times more return on investment than Canadian Imperial. However, Summa Silver is 12.69 times more volatile than Canadian Imperial Bank. It trades about 0.1 of its potential returns per unit of risk. Canadian Imperial Bank is currently generating about 0.04 per unit of risk. If you would invest 28.00 in Summa Silver Corp on October 14, 2024 and sell it today you would earn a total of 2.00 from holding Summa Silver Corp or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Summa Silver Corp vs. Canadian Imperial Bank
Performance |
| Timeline |
| Summa Silver Corp |
| Canadian Imperial Bank |
Summa Silver and Canadian Imperial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summa Silver and Canadian Imperial
The main advantage of trading using opposite Summa Silver and Canadian Imperial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summa Silver position performs unexpectedly, Canadian Imperial 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 Canadian Imperial will offset losses from the drop in Canadian Imperial's long position.| Summa Silver vs. Guanajuato Silver | Summa Silver vs. AbraSilver Resource Corp | Summa Silver vs. Blackrock Silver Corp | Summa Silver vs. Silver Viper Minerals |
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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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