Correlation Between Summa Silver and Emera Pref
Can any of the company-specific risk be diversified away by investing in both Summa Silver and Emera Pref 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 Summa Silver and Emera Pref into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summa Silver Corp and Emera Pref A, you can compare the effects of market volatilities on Summa Silver and Emera Pref 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 Summa Silver with a short position of Emera Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summa Silver and Emera Pref.
Diversification Opportunities for Summa Silver and Emera Pref
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Summa and Emera is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Summa Silver Corp and Emera Pref A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emera Pref A and Summa 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 Summa Silver Corp are associated (or correlated) with Emera Pref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emera Pref A has no effect on the direction of Summa Silver i.e., Summa Silver and Emera Pref go up and down completely randomly.
Pair Corralation between Summa Silver and Emera Pref
Assuming the 90 days trading horizon Summa Silver Corp is expected to under-perform the Emera Pref. In addition to that, Summa Silver is 6.14 times more volatile than Emera Pref A. It trades about -0.14 of its total potential returns per unit of risk. Emera Pref A is currently generating about 0.15 per unit of volatility. If you would invest 1,515 in Emera Pref A on September 25, 2024 and sell it today you would earn a total of 100.00 from holding Emera Pref A or generate 6.6% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Summa Silver Corp vs. Emera Pref A
Performance |
Timeline |
Summa Silver Corp |
Emera Pref A |
Summa Silver and Emera Pref Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Summa Silver and Emera Pref
The main advantage of trading using opposite Summa Silver and Emera Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summa Silver position performs unexpectedly, Emera Pref 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 Emera Pref will offset losses from the drop in Emera Pref's long position.Summa Silver vs. Precipitate Gold Corp | Summa Silver vs. Chakana Copper Corp | Summa Silver vs. ROKMASTER Resources Corp | Summa Silver vs. Rugby Mining Limited |
Emera Pref vs. Algonquin Power Utilities | Emera Pref vs. Westshore Terminals Investment | Emera Pref vs. Converge Technology Solutions | Emera Pref vs. Bip Investment 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Bonds Directory Find actively traded corporate debentures issued by US companies |