Correlation Between Almaden Minerals and IMPACT Silver

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

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

Diversification Opportunities for Almaden Minerals and IMPACT Silver

0.68

Correlation Coefficient

Almaden Minerals  IMPACT Silver

Poor diversification

The 3 months correlation between Almaden and IMPACT is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Almaden Minerals and IMPACT Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMPACT Silver Corp and Almaden Minerals 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 Almaden Minerals are associated (or correlated) with IMPACT Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IMPACT Silver Corp has no effect on the direction of Almaden Minerals i.e., Almaden Minerals and IMPACT Silver go up and down completely randomly.

Pair Corralation between Almaden Minerals and IMPACT Silver

Assuming the 90 days trading horizon Almaden Minerals is expected to generate 1.04 times less return on investment than IMPACT Silver. In addition to that, Almaden Minerals is 1.55 times more volatile than IMPACT Silver Corp. It trades about 0.17 of its total potential returns per unit of risk. IMPACT Silver Corp is currently generating about 0.28 per unit of volatility. If you would invest  19.00  in IMPACT Silver Corp on April 23, 2025 and sell it today you would earn a total of  20.00  from holding IMPACT Silver Corp or generate 105.26% return on investment over 90 days.

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

Almaden Minerals  vs.  IMPACT Silver Corp

Almaden Minerals

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Almaden Minerals are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal primary indicators, Almaden Minerals displayed solid returns over the last few months and may actually be approaching a breakup point.

IMPACT Silver Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in IMPACT Silver Corp are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, IMPACT Silver showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Almaden Minerals and IMPACT Silver

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

The idea behind Almaden Minerals and IMPACT Silver 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.

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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.