Correlation Between Bayhorse Silver and Applied Minerals

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

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

Diversification Opportunities for Bayhorse Silver and Applied Minerals

0.0

Correlation Coefficient

Bayhorse Silver  Applied Minerals

Pay attention - limited upside

The 3 months correlation between Bayhorse and Applied is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bayhorse Silver and Applied Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Applied Minerals and Bayhorse 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 Bayhorse Silver are associated (or correlated) with Applied Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Applied Minerals has no effect on the direction of Bayhorse Silver i.e., Bayhorse Silver and Applied Minerals go up and down completely randomly.

Pair Corralation between Bayhorse Silver and Applied Minerals

If you would invest (100.00) in Applied Minerals on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Applied Minerals or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Bayhorse Silver  vs.  Applied Minerals

Bayhorse Silver

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bayhorse Silver has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's forward indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Applied Minerals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Applied Minerals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Applied Minerals is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Bayhorse Silver and Applied Minerals

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

The idea behind Bayhorse Silver and Applied Minerals 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.

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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.