Correlation Between Affiliated Resources and Silver X

Can any of the company-specific risk be diversified away by investing in both Affiliated Resources and Silver X 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 Affiliated Resources and Silver X into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Affiliated Resources Corp and Silver X Mining, you can compare the effects of market volatilities on Affiliated Resources and Silver X 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 Affiliated Resources with a short position of Silver X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affiliated Resources and Silver X.

Diversification Opportunities for Affiliated Resources and Silver X

-0.34

Correlation Coefficient

Affiliated Resources  Silver X

Very good diversification

The 3 months correlation between Affiliated and Silver is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Affiliated Resources Corp and Silver X Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver X Mining and Affiliated Resources 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 Affiliated Resources Corp are associated (or correlated) with Silver X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver X Mining has no effect on the direction of Affiliated Resources i.e., Affiliated Resources and Silver X go up and down completely randomly.

Pair Corralation between Affiliated Resources and Silver X

Given the investment horizon of 90 days Affiliated Resources Corp is expected to generate 0.63 times more return on investment than Silver X. However, Affiliated Resources Corp is 1.58 times less risky than Silver X. It trades about -0.16 of its potential returns per unit of risk. Silver X Mining is currently generating about -0.11 per unit of risk. If you would invest  9.50  in Affiliated Resources Corp on September 3, 2024 and sell it today you would lose (1.30) from holding Affiliated Resources Corp or give up 13.68% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Affiliated Resources Corp  vs.  Silver X Mining

Affiliated Resources Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Affiliated Resources Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Silver X Mining

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Silver X Mining are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Silver X reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Affiliated Resources and Silver X

The main advantage of trading using opposite Affiliated Resources and Silver X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affiliated Resources position performs unexpectedly, Silver X 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 X will offset losses from the drop in Silver X's long position.

The idea behind Affiliated Resources Corp and Silver X Mining pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.