Correlation Between Tinka Resources and Pampa Metals
Can any of the company-specific risk be diversified away by investing in both Tinka Resources and Pampa Metals 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 Tinka Resources and Pampa Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tinka Resources Limited and Pampa Metals, you can compare the effects of market volatilities on Tinka Resources and Pampa Metals 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 Tinka Resources with a short position of Pampa Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tinka Resources and Pampa Metals.
Diversification Opportunities for Tinka Resources and Pampa Metals
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tinka and Pampa is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Tinka Resources Limited and Pampa Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pampa Metals and Tinka Resources 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 Tinka Resources Limited are associated (or correlated) with Pampa Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pampa Metals has no effect on the direction of Tinka Resources i.e., Tinka Resources and Pampa Metals go up and down completely randomly.
Pair Corralation between Tinka Resources and Pampa Metals
Assuming the 90 days horizon Tinka Resources Limited is expected to generate 1.8 times more return on investment than Pampa Metals. However, Tinka Resources is 1.8 times more volatile than Pampa Metals. It trades about 0.04 of its potential returns per unit of risk. Pampa Metals is currently generating about -0.05 per unit of risk. If you would invest 7.00 in Tinka Resources Limited on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Tinka Resources Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tinka Resources Limited vs. Pampa Metals
Performance |
| Timeline |
| Tinka Resources |
| Pampa Metals |
Tinka Resources and Pampa Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tinka Resources and Pampa Metals
The main advantage of trading using opposite Tinka Resources and Pampa Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tinka Resources position performs unexpectedly, Pampa Metals 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 Pampa Metals will offset losses from the drop in Pampa Metals' long position.| Tinka Resources vs. Silver Hammer Mining | Tinka Resources vs. Reyna Silver Corp | Tinka Resources vs. Guanajuato Silver | Tinka Resources vs. Silver One Resources |
| Pampa Metals vs. Surge Battery Metals | Pampa Metals vs. United Royale Holdings | Pampa Metals vs. Hillcrest Energy Technologies | Pampa Metals vs. Star Alliance International |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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