Correlation Between Sixty North and Canada Silver

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

By analyzing existing cross correlation between Sixty North Gold and Canada Silver Cobalt, you can compare the effects of market volatilities on Sixty North and Canada 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 Sixty North with a short position of Canada Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixty North and Canada Silver.

Diversification Opportunities for Sixty North and Canada Silver

-0.07

Correlation Coefficient

Sixty North  Canada Silver

Good diversification

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

Pair Corralation between Sixty North and Canada Silver

Assuming the 90 days horizon Sixty North Gold is expected to under-perform the Canada Silver. But the pink sheet apears to be less risky and, when comparing its historical volatility, Sixty North Gold is 1.0 times less risky than Canada Silver. The pink sheet trades about -0.13 of its potential returns per unit of risk. The Canada Silver Cobalt is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  10.00  in Canada Silver Cobalt on September 22, 2024 and sell it today you would earn a total of  0.00  from holding Canada Silver Cobalt or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Sixty North Gold  vs.  Canada Silver Cobalt

Sixty North Gold

Risk-Adjusted Performance

7 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Sixty North Gold are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Sixty North reported solid returns over the last few months and may actually be approaching a breakup point.

Canada Silver Cobalt

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Canada Silver Cobalt has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Sixty North and Canada Silver

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

The idea behind Sixty North Gold and Canada Silver Cobalt 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.