Correlation Between Southern Silver and Fabled Copper

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

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

Diversification Opportunities for Southern Silver and Fabled Copper

0.0

Correlation Coefficient

Southern Silver  Fabled Copper

Pay attention - limited upside

The 3 months correlation between Southern and Fabled is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Southern Silver Exploration and Fabled Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fabled Copper Corp and Southern Silver 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 Southern Silver Exploration are associated (or correlated) with Fabled Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fabled Copper Corp has no effect on the direction of Southern Silver i.e., Southern Silver and Fabled Copper go up and down completely randomly.

Pair Corralation between Southern Silver and Fabled Copper

Assuming the 90 days horizon Southern Silver is expected to generate 14.12 times less return on investment than Fabled Copper. But when comparing it to its historical volatility, Southern Silver Exploration is 7.24 times less risky than Fabled Copper. It trades about 0.03 of its potential returns per unit of risk. Fabled Copper Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  6.50  in Fabled Copper Corp on September 13, 2024 and sell it today you would lose (3.98) from holding Fabled Copper Corp or give up 61.23% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Southern Silver Exploration  vs.  Fabled Copper Corp

Southern Silver Expl

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Southern Silver Exploration 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 technical and fundamental 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.

Fabled Copper Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fabled Copper Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Fabled Copper is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Southern Silver and Fabled Copper

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

The idea behind Southern Silver Exploration and Fabled Copper Corp 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.