Correlation Between Discovery Silver and SSR Mining

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

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

Diversification Opportunities for Discovery Silver and SSR Mining

0.78

Correlation Coefficient

Discovery Silver  SSR Mining

Poor diversification

The 3 months correlation between Discovery and SSR is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Discovery Silver Corp and SSR Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSR Mining and Discovery 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 Discovery Silver Corp are associated (or correlated) with SSR Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSR Mining has no effect on the direction of Discovery Silver i.e., Discovery Silver and SSR Mining go up and down completely randomly.

Pair Corralation between Discovery Silver and SSR Mining

Assuming the 90 days trading horizon Discovery Silver Corp is expected to generate 1.44 times more return on investment than SSR Mining. However, Discovery Silver is 1.44 times more volatile than SSR Mining. It trades about 0.08 of its potential returns per unit of risk. SSR Mining is currently generating about 0.08 per unit of risk. If you would invest  266.00  in Discovery Silver Corp on April 22, 2025 and sell it today you would earn a total of  48.00  from holding Discovery Silver Corp or generate 18.05% return on investment over 90 days.

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

Discovery Silver Corp  vs.  SSR Mining

Discovery Silver Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Discovery Silver Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Discovery Silver displayed solid returns over the last few months and may actually be approaching a breakup point.

SSR Mining

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in SSR Mining are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, SSR Mining displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Discovery Silver and SSR Mining

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

The idea behind Discovery Silver Corp and SSR Mining 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.