Correlation Between Fortuna Silver and Dfa California

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

By analyzing existing cross correlation between Fortuna Silver Mines and Dfa California Municipal, you can compare the effects of market volatilities on Fortuna Silver and Dfa California 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 Fortuna Silver with a short position of Dfa California. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortuna Silver and Dfa California.

Diversification Opportunities for Fortuna Silver and Dfa California

-0.1

Correlation Coefficient

Fortuna Silver  Dfa California

Good diversification

The 3 months correlation between Fortuna and Dfa is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Fortuna Silver Mines and Dfa California Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dfa California Municipal and Fortuna 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 Fortuna Silver Mines are associated (or correlated) with Dfa California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dfa California Municipal has no effect on the direction of Fortuna Silver i.e., Fortuna Silver and Dfa California go up and down completely randomly.

Pair Corralation between Fortuna Silver and Dfa California

Considering the 90-day investment horizon Fortuna Silver Mines is expected to generate 77.83 times more return on investment than Dfa California. However, Fortuna Silver is 77.83 times more volatile than Dfa California Municipal. It trades about 0.06 of its potential returns per unit of risk. Dfa California Municipal is currently generating about -0.07 per unit of risk. If you would invest  843.00  in Fortuna Silver Mines on September 11, 2025 and sell it today you would earn a total of  79.00  from holding Fortuna Silver Mines or generate 9.37% return on investment over 90 days.

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

Fortuna Silver Mines  vs.  Dfa California Municipal

Fortuna Silver Mines

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Fortuna Silver Mines are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Fortuna Silver may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Dfa California Municipal

Risk-Adjusted Performance

Weakest

Over the last 90 days Dfa California Municipal has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Dfa California is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Fortuna Silver and Dfa California

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

The idea behind Fortuna Silver Mines and Dfa California Municipal 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.

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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.