Correlation Between Triple Flag and Silver Tiger
Can any of the company-specific risk be diversified away by investing in both Triple Flag and Silver Tiger 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 Triple Flag and Silver Tiger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triple Flag Precious and Silver Tiger Metals, you can compare the effects of market volatilities on Triple Flag and Silver Tiger 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 Triple Flag with a short position of Silver Tiger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triple Flag and Silver Tiger.
Diversification Opportunities for Triple Flag and Silver Tiger
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Triple and Silver is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Triple Flag Precious and Silver Tiger Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver Tiger Metals and Triple Flag 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 Triple Flag Precious are associated (or correlated) with Silver Tiger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver Tiger Metals has no effect on the direction of Triple Flag i.e., Triple Flag and Silver Tiger go up and down completely randomly.
Pair Corralation between Triple Flag and Silver Tiger
Given the investment horizon of 90 days Triple Flag is expected to generate 2.2 times less return on investment than Silver Tiger. But when comparing it to its historical volatility, Triple Flag Precious is 2.68 times less risky than Silver Tiger. It trades about 0.02 of its potential returns per unit of risk. Silver Tiger Metals is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 22.00 in Silver Tiger Metals on September 14, 2024 and sell it today you would lose (4.00) from holding Silver Tiger Metals or give up 18.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Triple Flag Precious vs. Silver Tiger Metals
Performance |
| Timeline |
| Triple Flag Precious |
| Silver Tiger Metals |
Triple Flag and Silver Tiger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triple Flag and Silver Tiger
The main advantage of trading using opposite Triple Flag and Silver Tiger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triple Flag position performs unexpectedly, Silver Tiger 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 Silver Tiger will offset losses from the drop in Silver Tiger's long position.| Triple Flag vs. Metalla Royalty Streaming | Triple Flag vs. Endeavour Silver Corp | Triple Flag vs. SilverCrest Metals | Triple Flag vs. Gatos Silver |
| Silver Tiger vs. Defiance Silver Corp | Silver Tiger vs. Summa Silver Corp | Silver Tiger vs. AbraSilver Resource Corp | Silver Tiger vs. Brixton Metals |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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