Correlation Between Americas Silver and IMPACT Silver
Can any of the company-specific risk be diversified away by investing in both Americas Silver and IMPACT 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 Americas Silver and IMPACT Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Americas Silver Corp and IMPACT Silver Corp, you can compare the effects of market volatilities on Americas Silver and IMPACT 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 Americas Silver with a short position of IMPACT Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Americas Silver and IMPACT Silver.
Diversification Opportunities for Americas Silver and IMPACT Silver
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Americas and IMPACT is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Americas Silver Corp and IMPACT Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMPACT Silver Corp and Americas 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 Americas Silver Corp are associated (or correlated) with IMPACT Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IMPACT Silver Corp has no effect on the direction of Americas Silver i.e., Americas Silver and IMPACT Silver go up and down completely randomly.
Pair Corralation between Americas Silver and IMPACT Silver
Assuming the 90 days trading horizon Americas Silver Corp is expected to generate 0.91 times more return on investment than IMPACT Silver. However, Americas Silver Corp is 1.1 times less risky than IMPACT Silver. It trades about 0.19 of its potential returns per unit of risk. IMPACT Silver Corp is currently generating about 0.09 per unit of risk. If you would invest 32.00 in Americas Silver Corp on September 6, 2024 and sell it today you would earn a total of 26.00 from holding Americas Silver Corp or generate 81.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Americas Silver Corp vs. IMPACT Silver Corp
Performance |
Timeline |
Americas Silver Corp |
IMPACT Silver Corp |
Americas Silver and IMPACT Silver Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Americas Silver and IMPACT Silver
The main advantage of trading using opposite Americas Silver and IMPACT Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Americas Silver position performs unexpectedly, IMPACT 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 IMPACT Silver will offset losses from the drop in IMPACT Silver's long position.Americas Silver vs. First Majestic Silver | Americas Silver vs. Ivanhoe Energy | Americas Silver vs. Orezone Gold Corp | Americas Silver vs. Faraday Copper Corp |
IMPACT Silver vs. Bear Creek Mining | IMPACT Silver vs. Kootenay Silver | IMPACT Silver vs. Klondike Silver Corp | IMPACT Silver vs. Excellon Resources |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume |