Correlation Between Aquagold International and Silver Tiger

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

By analyzing existing cross correlation between Aquagold International and Silver Tiger Metals, you can compare the effects of market volatilities on Aquagold International and Silver Tiger 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 Aquagold International with a short position of Silver Tiger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Silver Tiger.

Diversification Opportunities for Aquagold International and Silver Tiger

-0.65

Correlation Coefficient

Aquagold International  Silver Tiger

Excellent diversification

The 3 months correlation between Aquagold and Silver is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Silver Tiger Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver Tiger Metals and Aquagold International 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 Aquagold International are associated (or correlated) with Silver Tiger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver Tiger Metals has no effect on the direction of Aquagold International i.e., Aquagold International and Silver Tiger go up and down completely randomly.

Pair Corralation between Aquagold International and Silver Tiger

Given the investment horizon of 90 days Aquagold International is expected to under-perform the Silver Tiger. In addition to that, Aquagold International is 1.12 times more volatile than Silver Tiger Metals. It trades about -0.12 of its total potential returns per unit of risk. Silver Tiger Metals is currently generating about 0.14 per unit of volatility. If you would invest  15.00  in Silver Tiger Metals on December 29, 2024 and sell it today you would earn a total of  7.00  from holding Silver Tiger Metals or generate 46.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.31%
Values	Daily Returns

Aquagold International  vs.  Silver Tiger Metals

Aquagold International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aquagold International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Silver Tiger Metals

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Silver Tiger Metals are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Silver Tiger reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aquagold International and Silver Tiger

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

The idea behind Aquagold International and Silver Tiger Metals 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.