Correlation Between Silver Elephant and Winston Gold

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

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

Diversification Opportunities for Silver Elephant and Winston Gold

-0.18

Correlation Coefficient

Silver Elephant  Winston Gold

Good diversification

The 3 months correlation between Silver and Winston is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Silver Elephant Mining and Winston Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winston Gold Corp and Silver Elephant 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 Silver Elephant Mining are associated (or correlated) with Winston Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winston Gold Corp has no effect on the direction of Silver Elephant i.e., Silver Elephant and Winston Gold go up and down completely randomly.

Pair Corralation between Silver Elephant and Winston Gold

Assuming the 90 days horizon Silver Elephant Mining is expected to under-perform the Winston Gold. But the otc stock apears to be less risky and, when comparing its historical volatility, Silver Elephant Mining is 18.38 times less risky than Winston Gold. The otc stock trades about -0.07 of its potential returns per unit of risk. The Winston Gold Corp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Winston Gold Corp on May 6, 2025 and sell it today you would earn a total of  0.00  from holding Winston Gold Corp or generate 0.0% return on investment over 90 days.

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

Silver Elephant Mining  vs.  Winston Gold Corp

Silver Elephant Mining

Risk-Adjusted Performance

Very Weak

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

Winston Gold Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Winston Gold Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Winston Gold reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Silver Elephant and Winston Gold

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

The idea behind Silver Elephant Mining and Winston Gold Corp 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.