Correlation Between Clifton Mining and Avino Silver

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

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

Diversification Opportunities for Clifton Mining and Avino Silver

0.21

Correlation Coefficient

Clifton Mining  Avino Silver

Modest diversification

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

Pair Corralation between Clifton Mining and Avino Silver

Given the investment horizon of 90 days Clifton Mining Co is expected to under-perform the Avino Silver. In addition to that, Clifton Mining is 2.01 times more volatile than Avino Silver Gold. It trades about -0.09 of its total potential returns per unit of risk. Avino Silver Gold is currently generating about 0.26 per unit of volatility. If you would invest  93.00  in Avino Silver Gold on October 26, 2024 and sell it today you would earn a total of  21.00  from holding Avino Silver Gold or generate 22.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	94.74%
Values	Daily Returns

Clifton Mining Co  vs.  Avino Silver Gold

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.

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.

Pair Trading with Clifton Mining and Avino Silver

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

The idea behind Clifton Mining Co and Avino Silver Gold 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.