Correlation Between Impala Platinum and Summa Silver
Can any of the company-specific risk be diversified away by investing in both Impala Platinum and Summa 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 Impala Platinum and Summa Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impala Platinum Holdings and Summa Silver Corp, you can compare the effects of market volatilities on Impala Platinum and Summa 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 Impala Platinum with a short position of Summa Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impala Platinum and Summa Silver.
Diversification Opportunities for Impala Platinum and Summa Silver
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Impala and Summa is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Impala Platinum Holdings and Summa Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summa Silver Corp and Impala Platinum 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 Impala Platinum Holdings are associated (or correlated) with Summa Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summa Silver Corp has no effect on the direction of Impala Platinum i.e., Impala Platinum and Summa Silver go up and down completely randomly.
Pair Corralation between Impala Platinum and Summa Silver
Assuming the 90 days horizon Impala Platinum Holdings is expected to under-perform the Summa Silver. But the otc stock apears to be less risky and, when comparing its historical volatility, Impala Platinum Holdings is 1.51 times less risky than Summa Silver. The otc stock trades about -0.21 of its potential returns per unit of risk. The Summa Silver Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 20.00 in Summa Silver Corp on September 24, 2024 and sell it today you would earn a total of 0.00 from holding Summa Silver Corp or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Impala Platinum Holdings vs. Summa Silver Corp
Performance |
Timeline |
Impala Platinum Holdings |
Summa Silver Corp |
Impala Platinum and Summa Silver Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Impala Platinum and Summa Silver
The main advantage of trading using opposite Impala Platinum and Summa Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impala Platinum position performs unexpectedly, Summa 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 Summa Silver will offset losses from the drop in Summa Silver's long position.Impala Platinum vs. Fresnillo PLC | Impala Platinum vs. Compania de Minas | Impala Platinum vs. Triple Flag Precious | Impala Platinum vs. Zimplats Holdings Limited |
Summa Silver vs. Impala Platinum Holdings | Summa Silver vs. Fresnillo PLC | Summa Silver vs. Compania de Minas | Summa Silver vs. Triple Flag Precious |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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