Correlation Between Fortuna Silver and Forrester Research

Can any of the company-specific risk be diversified away by investing in both Fortuna Silver and Forrester Research 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 Forrester Research 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 Forrester Research, you can compare the effects of market volatilities on Fortuna Silver and Forrester Research 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 Forrester Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortuna Silver and Forrester Research.

Diversification Opportunities for Fortuna Silver and Forrester Research

-0.62

Correlation Coefficient

Fortuna Silver  Forrester Research

Excellent diversification

The 3 months correlation between Fortuna and Forrester is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Fortuna Silver Mines and Forrester Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forrester Research 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 Forrester Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forrester Research has no effect on the direction of Fortuna Silver i.e., Fortuna Silver and Forrester Research go up and down completely randomly.

Pair Corralation between Fortuna Silver and Forrester Research

Considering the 90-day investment horizon Fortuna Silver Mines is expected to generate 1.38 times more return on investment than Forrester Research. However, Fortuna Silver is 1.38 times more volatile than Forrester Research. It trades about 0.16 of its potential returns per unit of risk. Forrester Research is currently generating about -0.24 per unit of risk. If you would invest  456.00  in Fortuna Silver Mines on January 14, 2025 and sell it today you would earn a total of  192.00  from holding Fortuna Silver Mines or generate 42.11% return on investment over 90 days.

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

Fortuna Silver Mines  vs.  Forrester Research

Fortuna Silver Mines

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fortuna Silver Mines are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Fortuna Silver displayed solid returns over the last few months and may actually be approaching a breakup point.

Forrester Research

Risk-Adjusted Performance

Very Weak

Over the last 90 days Forrester Research has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in May 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Fortuna Silver and Forrester Research

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

The idea behind Fortuna Silver Mines and Forrester Research 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 Anywhere module to track or share privately all of your investments from the convenience of any device.