Correlation Between Americas Silver and EMX Royalty
Can any of the company-specific risk be diversified away by investing in both Americas Silver and EMX Royalty 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 EMX Royalty 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 EMX Royalty Corp, you can compare the effects of market volatilities on Americas Silver and EMX Royalty 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 EMX Royalty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Americas Silver and EMX Royalty.
Diversification Opportunities for Americas Silver and EMX Royalty
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Americas and EMX is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Americas Silver Corp and EMX Royalty Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMX Royalty Corp 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 EMX Royalty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMX Royalty Corp has no effect on the direction of Americas Silver i.e., Americas Silver and EMX Royalty go up and down completely randomly.
Pair Corralation between Americas Silver and EMX Royalty
Given the investment horizon of 90 days Americas Silver Corp is expected to generate 2.69 times more return on investment than EMX Royalty. However, Americas Silver is 2.69 times more volatile than EMX Royalty Corp. It trades about 0.13 of its potential returns per unit of risk. EMX Royalty Corp is currently generating about 0.03 per unit of risk. If you would invest 25.00 in Americas Silver Corp on August 30, 2024 and sell it today you would earn a total of 12.00 from holding Americas Silver Corp or generate 48.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Americas Silver Corp vs. EMX Royalty Corp
Performance |
| Timeline |
| Americas Silver Corp |
| EMX Royalty Corp |
Americas Silver and EMX Royalty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Americas Silver and EMX Royalty
The main advantage of trading using opposite Americas Silver and EMX Royalty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Americas Silver position performs unexpectedly, EMX Royalty 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 EMX Royalty will offset losses from the drop in EMX Royalty's long position.| Americas Silver vs. Vizsla Resources Corp | Americas Silver vs. Western Copper and | Americas Silver vs. EMX Royalty Corp | Americas Silver vs. Alphamin Resources Corp |
| EMX Royalty vs. Metalla Royalty Streaming | EMX Royalty vs. Osisko Gold Ro | EMX Royalty vs. Equinox Gold Corp | EMX Royalty vs. SilverCrest 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |