Correlation Between USCorp and Silver Hammer
Can any of the company-specific risk be diversified away by investing in both USCorp and Silver Hammer 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 USCorp and Silver Hammer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between USCorp and Silver Hammer Mining, you can compare the effects of market volatilities on USCorp and Silver Hammer 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 USCorp with a short position of Silver Hammer. Check out your portfolio center. Please also check ongoing floating volatility patterns of USCorp and Silver Hammer.
Diversification Opportunities for USCorp and Silver Hammer
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between USCorp and Silver is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding USCorp and Silver Hammer Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver Hammer Mining and USCorp 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 USCorp are associated (or correlated) with Silver Hammer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver Hammer Mining has no effect on the direction of USCorp i.e., USCorp and Silver Hammer go up and down completely randomly.
Pair Corralation between USCorp and Silver Hammer
If you would invest 3.98 in Silver Hammer Mining on November 28, 2024 and sell it today you would earn a total of 4.72 from holding Silver Hammer Mining or generate 118.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
USCorp vs. Silver Hammer Mining
Performance |
| Timeline |
| USCorp |
| Silver Hammer Mining |
USCorp and Silver Hammer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USCorp and Silver Hammer
The main advantage of trading using opposite USCorp and Silver Hammer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USCorp position performs unexpectedly, Silver Hammer 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 Hammer will offset losses from the drop in Silver Hammer's long position.| USCorp vs. New Generation Consumer | USCorp vs. A1 Group | USCorp vs. Foodfest Intl 2000 | USCorp vs. Simulated Environmen |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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