Correlation Between TeraGo and Argenta Silver

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

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

Diversification Opportunities for TeraGo and Argenta Silver

-0.39

Correlation Coefficient

TeraGo  Argenta Silver

Very good diversification

The 3 months correlation between TeraGo and Argenta is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding TeraGo Inc and Argenta Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argenta Silver Corp and TeraGo 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 TeraGo Inc are associated (or correlated) with Argenta Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argenta Silver Corp has no effect on the direction of TeraGo i.e., TeraGo and Argenta Silver go up and down completely randomly.

Pair Corralation between TeraGo and Argenta Silver

Assuming the 90 days trading horizon TeraGo Inc is expected to generate 0.74 times more return on investment than Argenta Silver. However, TeraGo Inc is 1.36 times less risky than Argenta Silver. It trades about -0.06 of its potential returns per unit of risk. Argenta Silver Corp is currently generating about -0.12 per unit of risk. If you would invest  128.00  in TeraGo Inc on October 7, 2024 and sell it today you would lose (9.00) from holding TeraGo Inc or give up 7.03% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

TeraGo Inc  vs.  Argenta Silver Corp

TeraGo Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TeraGo Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Argenta Silver Corp

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Argenta Silver Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Argenta Silver showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TeraGo and Argenta Silver

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

The idea behind TeraGo Inc and Argenta 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.