Correlation Between Americas Silver and Amarc Resources
Can any of the company-specific risk be diversified away by investing in both Americas Silver and Amarc Resources 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 Americas Silver and Amarc Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Americas Silver Corp and Amarc Resources, you can compare the effects of market volatilities on Americas Silver and Amarc Resources 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 Americas Silver with a short position of Amarc Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Americas Silver and Amarc Resources.
Diversification Opportunities for Americas Silver and Amarc Resources
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Americas and Amarc is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Americas Silver Corp and Amarc Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amarc Resources and Americas 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 Americas Silver Corp are associated (or correlated) with Amarc Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amarc Resources has no effect on the direction of Americas Silver i.e., Americas Silver and Amarc Resources go up and down completely randomly.
Pair Corralation between Americas Silver and Amarc Resources
Given the investment horizon of 90 days Americas Silver Corp is expected to under-perform the Amarc Resources. In addition to that, Americas Silver is 1.22 times more volatile than Amarc Resources. It trades about -0.08 of its total potential returns per unit of risk. Amarc Resources is currently generating about -0.05 per unit of volatility. If you would invest 14.00 in Amarc Resources on September 1, 2024 and sell it today you would lose (1.00) from holding Amarc Resources or give up 7.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Americas Silver Corp vs. Amarc Resources
Performance |
| Timeline |
| Americas Silver Corp |
| Amarc Resources |
Americas Silver and Amarc Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Americas Silver and Amarc Resources
The main advantage of trading using opposite Americas Silver and Amarc Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Americas Silver position performs unexpectedly, Amarc Resources 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 Amarc Resources will offset losses from the drop in Amarc Resources' long position.| Americas Silver vs. BHP Group Limited | Americas Silver vs. Teck Resources Ltd | Americas Silver vs. Lithium Americas Corp | Americas Silver vs. MP Materials Corp |
| Amarc Resources vs. Durango Resources | Amarc Resources vs. Avarone Metals | Amarc Resources vs. Pampa Metals | Amarc Resources vs. Sun Summit Minerals |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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