Correlation Between Leocor Gold and Southern Silver

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

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

Diversification Opportunities for Leocor Gold and Southern Silver

-0.86

Correlation Coefficient

Leocor Gold  Southern Silver

Pay attention - limited upside

The 3 months correlation between Leocor and Southern is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Leocor Gold and Southern Silver Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern Silver Expl and Leocor Gold 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 Leocor Gold are associated (or correlated) with Southern Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern Silver Expl has no effect on the direction of Leocor Gold i.e., Leocor Gold and Southern Silver go up and down completely randomly.

Pair Corralation between Leocor Gold and Southern Silver

Assuming the 90 days horizon Leocor Gold is expected to under-perform the Southern Silver. In addition to that, Leocor Gold is 1.12 times more volatile than Southern Silver Exploration. It trades about -0.13 of its total potential returns per unit of risk. Southern Silver Exploration is currently generating about 0.1 per unit of volatility. If you would invest  12.00  in Southern Silver Exploration on December 30, 2024 and sell it today you would earn a total of  4.00  from holding Southern Silver Exploration or generate 33.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

Leocor Gold  vs.  Southern Silver Exploration

Leocor Gold

Risk-Adjusted Performance

Very Weak

Over the last 90 days Leocor Gold 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 basic 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.

Southern Silver Expl

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Southern Silver Exploration are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, Southern Silver reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Leocor Gold and Southern Silver

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

The idea behind Leocor Gold and Southern Silver Exploration 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .