Correlation Between Silvercorp Metals and Aya Gold
Can any of the company-specific risk be diversified away by investing in both Silvercorp Metals and Aya 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 Silvercorp Metals and Aya Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silvercorp Metals and Aya Gold Silver, you can compare the effects of market volatilities on Silvercorp Metals and Aya 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 Silvercorp Metals with a short position of Aya Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silvercorp Metals and Aya Gold.
Diversification Opportunities for Silvercorp Metals and Aya Gold
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Silvercorp and Aya is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Silvercorp Metals and Aya Gold Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aya Gold Silver and Silvercorp Metals 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 Silvercorp Metals are associated (or correlated) with Aya Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aya Gold Silver has no effect on the direction of Silvercorp Metals i.e., Silvercorp Metals and Aya Gold go up and down completely randomly.
Pair Corralation between Silvercorp Metals and Aya Gold
Considering the 90-day investment horizon Silvercorp Metals is expected to generate 1.07 times less return on investment than Aya Gold. But when comparing it to its historical volatility, Silvercorp Metals is 1.05 times less risky than Aya Gold. It trades about 0.05 of its potential returns per unit of risk. Aya Gold Silver is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 738.00 in Aya Gold Silver on August 24, 2024 and sell it today you would earn a total of 213.00 from holding Aya Gold Silver or generate 28.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
Silvercorp Metals vs. Aya Gold Silver
Performance |
| Timeline |
| Silvercorp Metals |
| Aya Gold Silver |
Silvercorp Metals and Aya Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silvercorp Metals and Aya Gold
The main advantage of trading using opposite Silvercorp Metals and Aya Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silvercorp Metals position performs unexpectedly, Aya 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 Aya Gold will offset losses from the drop in Aya Gold's long position.| Silvercorp Metals vs. Endeavour Silver Corp | Silvercorp Metals vs. Fortuna Silver Mines | Silvercorp Metals vs. Pan American Silver | Silvercorp Metals vs. First Majestic Silver |
| Aya Gold vs. Bald Eagle Gold | Aya Gold vs. Silver One Resources | Aya Gold vs. Discovery Metals Corp | Aya Gold vs. Silver Hammer 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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