Correlation Between Silver Wolf and NevGold Corp

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

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

Diversification Opportunities for Silver Wolf and NevGold Corp

-0.46

Correlation Coefficient

Silver Wolf  NevGold Corp

Very good diversification

The 3 months correlation between Silver and NevGold is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Silver Wolf Exploration and NevGold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NevGold Corp and Silver Wolf 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 Silver Wolf Exploration are associated (or correlated) with NevGold Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NevGold Corp has no effect on the direction of Silver Wolf i.e., Silver Wolf and NevGold Corp go up and down completely randomly.

Pair Corralation between Silver Wolf and NevGold Corp

Assuming the 90 days horizon Silver Wolf is expected to generate 3.12 times less return on investment than NevGold Corp. In addition to that, Silver Wolf is 1.56 times more volatile than NevGold Corp. It trades about 0.02 of its total potential returns per unit of risk. NevGold Corp is currently generating about 0.09 per unit of volatility. If you would invest  15.00  in NevGold Corp on December 20, 2024 and sell it today you would earn a total of  4.00  from holding NevGold Corp or generate 26.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	96.77%
Values	Daily Returns

Silver Wolf Exploration  vs.  NevGold Corp

Silver Wolf Exploration

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Silver Wolf Exploration are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Silver Wolf reported solid returns over the last few months and may actually be approaching a breakup point.

NevGold Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in NevGold Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, NevGold Corp reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Silver Wolf and NevGold Corp

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

The idea behind Silver Wolf Exploration and NevGold 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.