Correlation Between Silver Bull and Stakeholder Gold
Can any of the company-specific risk be diversified away by investing in both Silver Bull and Stakeholder 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 Silver Bull and Stakeholder Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silver Bull Resources and Stakeholder Gold Corp, you can compare the effects of market volatilities on Silver Bull and Stakeholder 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 Silver Bull with a short position of Stakeholder Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silver Bull and Stakeholder Gold.
Diversification Opportunities for Silver Bull and Stakeholder Gold
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Silver and Stakeholder is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Silver Bull Resources and Stakeholder Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stakeholder Gold Corp and Silver Bull 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 Silver Bull Resources are associated (or correlated) with Stakeholder Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stakeholder Gold Corp has no effect on the direction of Silver Bull i.e., Silver Bull and Stakeholder Gold go up and down completely randomly.
Pair Corralation between Silver Bull and Stakeholder Gold
Assuming the 90 days trading horizon Silver Bull Resources is expected to under-perform the Stakeholder Gold. But the stock apears to be less risky and, when comparing its historical volatility, Silver Bull Resources is 1.59 times less risky than Stakeholder Gold. The stock trades about -0.05 of its potential returns per unit of risk. The Stakeholder Gold Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 70.00 in Stakeholder Gold Corp on September 12, 2024 and sell it today you would earn a total of 21.00 from holding Stakeholder Gold Corp or generate 30.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Silver Bull Resources vs. Stakeholder Gold Corp
Performance |
| Timeline |
| Silver Bull Resources |
| Stakeholder Gold Corp |
Silver Bull and Stakeholder Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silver Bull and Stakeholder Gold
The main advantage of trading using opposite Silver Bull and Stakeholder Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silver Bull position performs unexpectedly, Stakeholder 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 Stakeholder Gold will offset losses from the drop in Stakeholder Gold's long position.| Silver Bull vs. Ressources Minieres Radisson | Silver Bull vs. Galantas Gold Corp | Silver Bull vs. Red Pine Exploration | Silver Bull vs. Kore Mining |
| Stakeholder Gold vs. Ressources Minieres Radisson | Stakeholder Gold vs. Galantas Gold Corp | Stakeholder Gold vs. Red Pine Exploration | Stakeholder Gold vs. Kore Mining |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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