Correlation Between Silver One and GoldMining

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

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

Diversification Opportunities for Silver One and GoldMining

0.63

Correlation Coefficient

Silver One  GoldMining

Poor diversification

The 3 months correlation between Silver and GoldMining is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Silver One Resources and GoldMining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoldMining and Silver One 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 One Resources are associated (or correlated) with GoldMining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GoldMining has no effect on the direction of Silver One i.e., Silver One and GoldMining go up and down completely randomly.

Pair Corralation between Silver One and GoldMining

Assuming the 90 days horizon Silver One is expected to generate 4.27 times less return on investment than GoldMining. In addition to that, Silver One is 1.57 times more volatile than GoldMining. It trades about 0.04 of its total potential returns per unit of risk. GoldMining is currently generating about 0.26 per unit of volatility. If you would invest  82.00  in GoldMining on July 22, 2025 and sell it today you would earn a total of  71.00  from holding GoldMining or generate 86.59% return on investment over 90 days.

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

Silver One Resources  vs.  GoldMining

Silver One Resources

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Silver One Resources are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Silver One reported solid returns over the last few months and may actually be approaching a breakup point.

GoldMining

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in GoldMining are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady fundamental indicators, GoldMining reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Silver One and GoldMining

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

The idea behind Silver One Resources and GoldMining 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.