Correlation Between Santacruz Silv and Apollo Silver

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

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

Diversification Opportunities for Santacruz Silv and Apollo Silver

0.0

Correlation Coefficient

Santacruz Silv  Apollo Silver

Pay attention - limited upside

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

Pair Corralation between Santacruz Silv and Apollo Silver

If you would invest  14.00  in Apollo Silver Corp on December 30, 2024 and sell it today you would earn a total of  11.00  from holding Apollo Silver Corp or generate 78.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Santacruz Silv  vs.  Apollo Silver Corp

Santacruz Silv

Risk-Adjusted Performance

Very Weak

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

Apollo Silver Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Apollo Silver Corp are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Apollo Silver reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Santacruz Silv and Apollo Silver

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

The idea behind Santacruz Silv and Apollo Silver 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.