Correlation Between Surge Copper and Aftermath Silver

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

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

Diversification Opportunities for Surge Copper and Aftermath Silver

-0.05

Correlation Coefficient

Surge Copper  Aftermath Silver

Good diversification

The 3 months correlation between Surge and Aftermath is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Surge Copper Corp and Aftermath Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aftermath Silver and Surge Copper 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 Surge Copper Corp are associated (or correlated) with Aftermath Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aftermath Silver has no effect on the direction of Surge Copper i.e., Surge Copper and Aftermath Silver go up and down completely randomly.

Pair Corralation between Surge Copper and Aftermath Silver

Assuming the 90 days horizon Surge Copper Corp is expected to under-perform the Aftermath Silver. But the otc stock apears to be less risky and, when comparing its historical volatility, Surge Copper Corp is 1.1 times less risky than Aftermath Silver. The otc stock trades about -0.1 of its potential returns per unit of risk. The Aftermath Silver is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  30.00  in Aftermath Silver on September 13, 2024 and sell it today you would earn a total of  4.00  from holding Aftermath Silver or generate 13.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Surge Copper Corp  vs.  Aftermath Silver

Surge Copper Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Surge Copper Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Aftermath Silver

Risk-Adjusted Performance

4 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Aftermath Silver are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Aftermath Silver reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Surge Copper and Aftermath Silver

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

The idea behind Surge Copper Corp and Aftermath 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.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.