Correlation Between 26441CBL8 and Summa Silver

Can any of the company-specific risk be diversified away by investing in both 26441CBL8 and Summa 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 26441CBL8 and Summa Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between DUKE ENERGY P and Summa Silver Corp, you can compare the effects of market volatilities on 26441CBL8 and Summa 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 26441CBL8 with a short position of Summa Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of 26441CBL8 and Summa Silver.

Diversification Opportunities for 26441CBL8 and Summa Silver

-0.66

Correlation Coefficient

26441CBL8  Summa Silver

Excellent diversification

The 3 months correlation between 26441CBL8 and Summa is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding DUKE ENERGY P and Summa Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summa Silver Corp and 26441CBL8 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 DUKE ENERGY P are associated (or correlated) with Summa Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summa Silver Corp has no effect on the direction of 26441CBL8 i.e., 26441CBL8 and Summa Silver go up and down completely randomly.

Pair Corralation between 26441CBL8 and Summa Silver

Assuming the 90 days trading horizon DUKE ENERGY P is expected to under-perform the Summa Silver. But the bond apears to be less risky and, when comparing its historical volatility, DUKE ENERGY P is 4.16 times less risky than Summa Silver. The bond trades about -0.13 of its potential returns per unit of risk. The Summa Silver Corp is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  27.00  in Summa Silver Corp on October 26, 2024 and sell it today you would lose (3.00) from holding Summa Silver Corp or give up 11.11% of portfolio value over 90 days.

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

DUKE ENERGY P  vs.  Summa Silver Corp

DUKE ENERGY P

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days DUKE ENERGY P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for DUKE ENERGY P investors.

Summa Silver Corp

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with 26441CBL8 and Summa Silver

The main advantage of trading using opposite 26441CBL8 and Summa Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 26441CBL8 position performs unexpectedly, Summa 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 Summa Silver will offset losses from the drop in Summa Silver's long position.

The idea behind DUKE ENERGY P and Summa 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..