Correlation Between Summa Silver and Platinum Group
Can any of the company-specific risk be diversified away by investing in both Summa Silver and Platinum Group 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 Platinum Group 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 Platinum Group Metals, you can compare the effects of market volatilities on Summa Silver and Platinum Group 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 Platinum Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summa Silver and Platinum Group.
Diversification Opportunities for Summa Silver and Platinum Group
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Summa and Platinum is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Summa Silver Corp and Platinum Group Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Group Metals 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 Platinum Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Group Metals has no effect on the direction of Summa Silver i.e., Summa Silver and Platinum Group go up and down completely randomly.
Pair Corralation between Summa Silver and Platinum Group
Assuming the 90 days horizon Summa Silver Corp is expected to under-perform the Platinum Group. But the otc stock apears to be less risky and, when comparing its historical volatility, Summa Silver Corp is 1.18 times less risky than Platinum Group. The otc stock trades about -0.16 of its potential returns per unit of risk. The Platinum Group Metals is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 143.00 in Platinum Group Metals on August 30, 2024 and sell it today you would earn a total of 19.00 from holding Platinum Group Metals or generate 13.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Summa Silver Corp vs. Platinum Group Metals
Performance |
| Timeline |
| Summa Silver Corp |
| Platinum Group Metals |
Summa Silver and Platinum Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summa Silver and Platinum Group
The main advantage of trading using opposite Summa Silver and Platinum Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summa Silver position performs unexpectedly, Platinum Group 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 Platinum Group will offset losses from the drop in Platinum Group's long position.| Summa Silver vs. P2 Gold | Summa Silver vs. Enduro Metals | Summa Silver vs. Kodiak Copper Corp | Summa Silver vs. Mirasol Resources |
| Platinum Group vs. Endeavour Silver Corp | Platinum Group vs. Avino Silver Gold | Platinum Group vs. Fortuna Silver Mines | Platinum Group vs. Impala Platinum Holdings |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| 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 | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |