Correlation Between SilverCrest Metals and IShares MSCI

Can any of the company-specific risk be diversified away by investing in both SilverCrest Metals and IShares MSCI 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 SilverCrest Metals and IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SilverCrest Metals and iShares MSCI Global, you can compare the effects of market volatilities on SilverCrest Metals and IShares MSCI 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 SilverCrest Metals with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of SilverCrest Metals and IShares MSCI.

Diversification Opportunities for SilverCrest Metals and IShares MSCI

0.76

Correlation Coefficient

SilverCrest Metals  IShares MSCI

Poor diversification

The 3 months correlation between SilverCrest and IShares is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding SilverCrest Metals and iShares MSCI Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI Global and SilverCrest Metals 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 SilverCrest Metals are associated (or correlated) with IShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares MSCI Global has no effect on the direction of SilverCrest Metals i.e., SilverCrest Metals and IShares MSCI go up and down completely randomly.

Pair Corralation between SilverCrest Metals and IShares MSCI

Given the investment horizon of 90 days SilverCrest Metals is expected to under-perform the IShares MSCI. In addition to that, SilverCrest Metals is 1.49 times more volatile than iShares MSCI Global. It trades about -0.18 of its total potential returns per unit of risk. iShares MSCI Global is currently generating about -0.22 per unit of volatility. If you would invest  1,340  in iShares MSCI Global on October 9, 2024 and sell it today you would lose (142.00) from holding iShares MSCI Global or give up 10.6% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

SilverCrest Metals  vs.  iShares MSCI Global

SilverCrest Metals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SilverCrest Metals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable essential indicators, SilverCrest Metals is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

iShares MSCI Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days iShares MSCI Global has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest fragile performance, the Etf's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the ETF retail investors.

Pair Trading with SilverCrest Metals and IShares MSCI

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

The idea behind SilverCrest Metals and iShares MSCI Global 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.