Correlation Between MINCO SILVER and Bank of Nova Scotia

Can any of the company-specific risk be diversified away by investing in both MINCO SILVER and Bank of Nova Scotia 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 MINCO SILVER and Bank of Nova Scotia into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MINCO SILVER and The Bank of, you can compare the effects of market volatilities on MINCO SILVER and Bank of Nova Scotia 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 MINCO SILVER with a short position of Bank of Nova Scotia. Check out your portfolio center. Please also check ongoing floating volatility patterns of MINCO SILVER and Bank of Nova Scotia.

Diversification Opportunities for MINCO SILVER and Bank of Nova Scotia

0.07

Correlation Coefficient

MINCO SILVER  Bank of Nova Scotia

Significant diversification

The 3 months correlation between MINCO and Bank is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding MINCO SILVER and The Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Nova Scotia and MINCO 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 MINCO SILVER are associated (or correlated) with Bank of Nova Scotia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Nova Scotia has no effect on the direction of MINCO SILVER i.e., MINCO SILVER and Bank of Nova Scotia go up and down completely randomly.

Pair Corralation between MINCO SILVER and Bank of Nova Scotia

Assuming the 90 days trading horizon MINCO SILVER is expected to generate 5.46 times more return on investment than Bank of Nova Scotia. However, MINCO SILVER is 5.46 times more volatile than The Bank of. It trades about 0.12 of its potential returns per unit of risk. The Bank of is currently generating about -0.02 per unit of risk. If you would invest  12.00  in MINCO SILVER on October 22, 2024 and sell it today you would earn a total of  1.00  from holding MINCO SILVER or generate 8.33% return on investment over 90 days.

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

MINCO SILVER  vs.  The Bank of

MINCO SILVER

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in MINCO SILVER are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile fundamental indicators, MINCO SILVER unveiled solid returns over the last few months and may actually be approaching a breakup point.

Bank of Nova Scotia

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in The Bank of are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Bank of Nova Scotia is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with MINCO SILVER and Bank of Nova Scotia

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

The idea behind MINCO SILVER and The Bank of 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.