Correlation Between SSR Mining and Gatos Silver
Can any of the company-specific risk be diversified away by investing in both SSR Mining and Gatos 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 SSR Mining and Gatos Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSR Mining and Gatos Silver, you can compare the effects of market volatilities on SSR Mining and Gatos 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 SSR Mining with a short position of Gatos Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSR Mining and Gatos Silver.
Diversification Opportunities for SSR Mining and Gatos Silver
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SSR and Gatos is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding SSR Mining and Gatos Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gatos Silver and SSR Mining 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 SSR Mining are associated (or correlated) with Gatos Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gatos Silver has no effect on the direction of SSR Mining i.e., SSR Mining and Gatos Silver go up and down completely randomly.
Pair Corralation between SSR Mining and Gatos Silver
Given the investment horizon of 90 days SSR Mining is expected to under-perform the Gatos Silver. But the stock apears to be less risky and, when comparing its historical volatility, SSR Mining is 1.22 times less risky than Gatos Silver. The stock trades about -0.04 of its potential returns per unit of risk. The Gatos Silver is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 223.00 in Gatos Silver on January 19, 2024 and sell it today you would earn a total of 738.00 from holding Gatos Silver or generate 330.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
SSR Mining vs. Gatos Silver
Performance |
Timeline |
SSR Mining |
Gatos Silver |
SSR Mining and Gatos Silver Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SSR Mining and Gatos Silver
The main advantage of trading using opposite SSR Mining and Gatos Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSR Mining position performs unexpectedly, Gatos 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 Gatos Silver will offset losses from the drop in Gatos Silver's long position.SSR Mining vs. Wheaton Precious Metals | SSR Mining vs. Agnico Eagle Mines | SSR Mining vs. Sandstorm Gold Ltd | SSR Mining vs. Osisko Gold Ro |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Transaction History View history of all your transactions and understand their impact on performance | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |