Correlation Between Avino Silver and Primaris Retail

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

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

Diversification Opportunities for Avino Silver and Primaris Retail

0.81

Correlation Coefficient

Avino Silver  Primaris Retail

Very poor diversification

The 3 months correlation between Avino and Primaris is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Avino Silver Gold and Primaris Retail RE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Primaris Retail RE and Avino 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 Avino Silver Gold are associated (or correlated) with Primaris Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Primaris Retail RE has no effect on the direction of Avino Silver i.e., Avino Silver and Primaris Retail go up and down completely randomly.

Pair Corralation between Avino Silver and Primaris Retail

Assuming the 90 days trading horizon Avino Silver Gold is expected to generate 4.34 times more return on investment than Primaris Retail. However, Avino Silver is 4.34 times more volatile than Primaris Retail RE. It trades about 0.25 of its potential returns per unit of risk. Primaris Retail RE is currently generating about 0.1 per unit of risk. If you would invest  271.00  in Avino Silver Gold on April 21, 2025 and sell it today you would earn a total of  233.00  from holding Avino Silver Gold or generate 85.98% return on investment over 90 days.

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

Avino Silver Gold  vs.  Primaris Retail RE

Avino Silver Gold

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Avino Silver Gold are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal primary indicators, Avino Silver displayed solid returns over the last few months and may actually be approaching a breakup point.

Primaris Retail RE

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Primaris Retail RE are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Primaris Retail may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Avino Silver and Primaris Retail

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

The idea behind Avino Silver Gold and Primaris Retail RE 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.