Correlation Between MINCO SILVER and Swiss Life
Can any of the company-specific risk be diversified away by investing in both MINCO SILVER and Swiss Life 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 MINCO SILVER and Swiss Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MINCO SILVER and Swiss Life Holding, you can compare the effects of market volatilities on MINCO SILVER and Swiss Life 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 MINCO SILVER with a short position of Swiss Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of MINCO SILVER and Swiss Life.
Diversification Opportunities for MINCO SILVER and Swiss Life
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MINCO and Swiss is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding MINCO SILVER and Swiss Life Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swiss Life Holding and MINCO 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 MINCO SILVER are associated (or correlated) with Swiss Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swiss Life Holding has no effect on the direction of MINCO SILVER i.e., MINCO SILVER and Swiss Life go up and down completely randomly.
Pair Corralation between MINCO SILVER and Swiss Life
Assuming the 90 days trading horizon MINCO SILVER is expected to generate 2.89 times less return on investment than Swiss Life. In addition to that, MINCO SILVER is 1.54 times more volatile than Swiss Life Holding. It trades about 0.01 of its total potential returns per unit of risk. Swiss Life Holding is currently generating about 0.06 per unit of volatility. If you would invest 2,026 in Swiss Life Holding on September 12, 2024 and sell it today you would earn a total of 1,674 from holding Swiss Life Holding or generate 82.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MINCO SILVER vs. Swiss Life Holding
Performance |
| Timeline |
| MINCO SILVER |
| Swiss Life Holding |
MINCO SILVER and Swiss Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MINCO SILVER and Swiss Life
The main advantage of trading using opposite MINCO SILVER and Swiss Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MINCO SILVER position performs unexpectedly, Swiss Life 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 Swiss Life will offset losses from the drop in Swiss Life's long position.| MINCO SILVER vs. Apple Inc | MINCO SILVER vs. Apple Inc | MINCO SILVER vs. Apple Inc | MINCO SILVER vs. Apple Inc |
| Swiss Life vs. Carsales | Swiss Life vs. Zijin Mining Group | Swiss Life vs. MINCO SILVER | Swiss Life vs. GRIFFIN MINING LTD |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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