Correlation Between Avino Silver and Clifton Mining

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

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

Diversification Opportunities for Avino Silver and Clifton Mining

0.21

Correlation Coefficient

Avino Silver  Clifton Mining

Modest diversification

The 3 months correlation between Avino and Clifton is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Avino Silver Gold and Clifton Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clifton Mining and Avino 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 Avino Silver Gold are associated (or correlated) with Clifton Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clifton Mining has no effect on the direction of Avino Silver i.e., Avino Silver and Clifton Mining go up and down completely randomly.

Pair Corralation between Avino Silver and Clifton Mining

Considering the 90-day investment horizon Avino Silver Gold is expected to generate 0.48 times more return on investment than Clifton Mining. However, Avino Silver Gold is 2.06 times less risky than Clifton Mining. It trades about 0.09 of its potential returns per unit of risk. Clifton Mining Co is currently generating about 0.02 per unit of risk. If you would invest  52.00  in Avino Silver Gold on October 26, 2024 and sell it today you would earn a total of  62.00  from holding Avino Silver Gold or generate 119.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	99.63%
Values	Daily Returns

Avino Silver Gold  vs.  Clifton Mining Co

Avino Silver Gold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Avino Silver Gold has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Clifton Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Clifton Mining Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Avino Silver and Clifton Mining

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

The idea behind Avino Silver Gold and Clifton Mining Co 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..