Correlation Between Sidney Resources and Gatos Silver

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

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

Diversification Opportunities for Sidney Resources and Gatos Silver

0.63

Correlation Coefficient

Sidney Resources  Gatos Silver

Poor diversification

The 3 months correlation between Sidney and Gatos is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Sidney Resources Corp and Gatos Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gatos Silver and Sidney Resources 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 Sidney Resources Corp are associated (or correlated) with Gatos Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gatos Silver has no effect on the direction of Sidney Resources i.e., Sidney Resources and Gatos Silver go up and down completely randomly.

Pair Corralation between Sidney Resources and Gatos Silver

If you would invest  1,500  in Gatos Silver on October 15, 2024 and sell it today you would lose (9.00) from holding Gatos Silver or give up 0.6% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	5.56%
Values	Daily Returns

Sidney Resources Corp  vs.  Gatos Silver

Sidney Resources Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sidney Resources Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Sidney Resources is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Gatos Silver

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gatos Silver has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting 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.

Pair Trading with Sidney Resources and Gatos Silver

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

The idea behind Sidney Resources Corp and Gatos Silver 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.