Correlation Between Americas Silver and StrikePoint Gold
Can any of the company-specific risk be diversified away by investing in both Americas Silver and StrikePoint 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 Americas Silver and StrikePoint Gold 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 StrikePoint Gold, you can compare the effects of market volatilities on Americas Silver and StrikePoint 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 Americas Silver with a short position of StrikePoint Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Americas Silver and StrikePoint Gold.
Diversification Opportunities for Americas Silver and StrikePoint Gold
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Americas and StrikePoint is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Americas Silver Corp and StrikePoint Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StrikePoint Gold 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 StrikePoint Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of StrikePoint Gold has no effect on the direction of Americas Silver i.e., Americas Silver and StrikePoint Gold go up and down completely randomly.
Pair Corralation between Americas Silver and StrikePoint Gold
Given the investment horizon of 90 days Americas Silver Corp is expected to generate 0.6 times more return on investment than StrikePoint Gold. However, Americas Silver Corp is 1.67 times less risky than StrikePoint Gold. It trades about -0.08 of its potential returns per unit of risk. StrikePoint Gold is currently generating about -0.15 per unit of risk. If you would invest 47.00 in Americas Silver Corp on September 1, 2024 and sell it today you would lose (6.00) from holding Americas Silver Corp or give up 12.77% 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. StrikePoint Gold
Performance |
| Timeline |
| Americas Silver Corp |
| StrikePoint Gold |
Americas Silver and StrikePoint Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Americas Silver and StrikePoint Gold
The main advantage of trading using opposite Americas Silver and StrikePoint Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Americas Silver position performs unexpectedly, StrikePoint 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 StrikePoint Gold will offset losses from the drop in StrikePoint Gold's 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 |
| StrikePoint Gold vs. ATT Inc | StrikePoint Gold vs. Merck Company | StrikePoint Gold vs. Walt Disney | StrikePoint Gold vs. Caterpillar |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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