Correlation Between MAS Gold and Silver Predator
Can any of the company-specific risk be diversified away by investing in both MAS Gold and Silver Predator 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 MAS Gold and Silver Predator into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAS Gold Corp and Silver Predator Corp, you can compare the effects of market volatilities on MAS Gold and Silver Predator 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 MAS Gold with a short position of Silver Predator. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAS Gold and Silver Predator.
Diversification Opportunities for MAS Gold and Silver Predator
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MAS and Silver is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding MAS Gold Corp and Silver Predator Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver Predator Corp and MAS 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 MAS Gold Corp are associated (or correlated) with Silver Predator. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver Predator Corp has no effect on the direction of MAS Gold i.e., MAS Gold and Silver Predator go up and down completely randomly.
Pair Corralation between MAS Gold and Silver Predator
Assuming the 90 days horizon MAS Gold Corp is expected to generate 4.3 times more return on investment than Silver Predator. However, MAS Gold is 4.3 times more volatile than Silver Predator Corp. It trades about 0.23 of its potential returns per unit of risk. Silver Predator Corp is currently generating about -0.29 per unit of risk. If you would invest 1.00 in MAS Gold Corp on September 23, 2024 and sell it today you would earn a total of 1.00 from holding MAS Gold Corp or generate 100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
MAS Gold Corp vs. Silver Predator Corp
Performance |
Timeline |
MAS Gold Corp |
Silver Predator Corp |
MAS Gold and Silver Predator Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MAS Gold and Silver Predator
The main advantage of trading using opposite MAS Gold and Silver Predator positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAS Gold position performs unexpectedly, Silver Predator 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 Silver Predator will offset losses from the drop in Silver Predator's long position.MAS Gold vs. Desert Gold Ventures | MAS Gold vs. Goldbank Mining Corp | MAS Gold vs. Themac Resources Group | MAS Gold vs. Plato Gold Corp |
Silver Predator vs. Wildsky Resources | Silver Predator vs. Q Gold Resources | Silver Predator vs. Plato Gold Corp | Silver Predator vs. MAS Gold Corp |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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