Correlation Between Summa Silver and Cassiar Gold
Can any of the company-specific risk be diversified away by investing in both Summa Silver and Cassiar Gold 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 Cassiar Gold 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 Cassiar Gold Corp, you can compare the effects of market volatilities on Summa Silver and Cassiar Gold 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 Cassiar Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summa Silver and Cassiar Gold.
Diversification Opportunities for Summa Silver and Cassiar Gold
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Summa and Cassiar is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Summa Silver Corp and Cassiar Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cassiar Gold Corp 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 Cassiar Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cassiar Gold Corp has no effect on the direction of Summa Silver i.e., Summa Silver and Cassiar Gold go up and down completely randomly.
Pair Corralation between Summa Silver and Cassiar Gold
Assuming the 90 days trading horizon Summa Silver Corp is expected to under-perform the Cassiar Gold. In addition to that, Summa Silver is 1.15 times more volatile than Cassiar Gold Corp. It trades about -0.33 of its total potential returns per unit of risk. Cassiar Gold Corp is currently generating about -0.14 per unit of volatility. If you would invest 25.00 in Cassiar Gold Corp on August 25, 2024 and sell it today you would lose (3.00) from holding Cassiar Gold Corp or give up 12.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Summa Silver Corp vs. Cassiar Gold Corp
Performance |
| Timeline |
| Summa Silver Corp |
| Cassiar Gold Corp |
Summa Silver and Cassiar Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summa Silver and Cassiar Gold
The main advantage of trading using opposite Summa Silver and Cassiar Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summa Silver position performs unexpectedly, Cassiar Gold 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 Cassiar Gold will offset losses from the drop in Cassiar Gold's long position.| Summa Silver vs. First Majestic Silver | Summa Silver vs. Ivanhoe Energy | Summa Silver vs. Orezone Gold Corp | Summa Silver vs. Faraday Copper Corp |
| Cassiar Gold vs. First Majestic Silver | Cassiar Gold vs. Ivanhoe Energy | Cassiar Gold vs. Orezone Gold Corp | Cassiar Gold vs. Faraday Copper 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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