Correlation Between Anacortes Mining and Fortuna Silver
Can any of the company-specific risk be diversified away by investing in both Anacortes Mining and Fortuna Silver 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 Anacortes Mining and Fortuna Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anacortes Mining Corp and Fortuna Silver Mines, you can compare the effects of market volatilities on Anacortes Mining and Fortuna Silver 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 Anacortes Mining with a short position of Fortuna Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anacortes Mining and Fortuna Silver.
Diversification Opportunities for Anacortes Mining and Fortuna Silver
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Anacortes and Fortuna is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Anacortes Mining Corp and Fortuna Silver Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortuna Silver Mines and Anacortes Mining 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 Anacortes Mining Corp are associated (or correlated) with Fortuna Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortuna Silver Mines has no effect on the direction of Anacortes Mining i.e., Anacortes Mining and Fortuna Silver go up and down completely randomly.
Pair Corralation between Anacortes Mining and Fortuna Silver
Assuming the 90 days horizon Anacortes Mining is expected to generate 1.05 times less return on investment than Fortuna Silver. In addition to that, Anacortes Mining is 1.97 times more volatile than Fortuna Silver Mines. It trades about 0.02 of its total potential returns per unit of risk. Fortuna Silver Mines is currently generating about 0.04 per unit of volatility. If you would invest 351.00 in Fortuna Silver Mines on November 5, 2024 and sell it today you would earn a total of 156.00 from holding Fortuna Silver Mines or generate 44.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 19.43% |
| Values | Daily Returns |
Anacortes Mining Corp vs. Fortuna Silver Mines
Performance |
| Timeline |
| Anacortes Mining Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Fortuna Silver Mines |
Anacortes Mining and Fortuna Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anacortes Mining and Fortuna Silver
The main advantage of trading using opposite Anacortes Mining and Fortuna Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anacortes Mining position performs unexpectedly, Fortuna Silver 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 Fortuna Silver will offset losses from the drop in Fortuna Silver's long position.| Anacortes Mining vs. Liberty Gold Corp | Anacortes Mining vs. Lion One Metals | Anacortes Mining vs. Marvel Gold Limited | Anacortes Mining vs. GGX Gold Corp |
| Fortuna Silver vs. Pan American Silver | Fortuna Silver vs. Harmony Gold Mining | Fortuna Silver vs. IAMGold | Fortuna Silver vs. Kinross Gold |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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