Correlation Between Stepan and Avino Silver

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

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

Diversification Opportunities for Stepan and Avino Silver

0.0

Correlation Coefficient

Stepan  Avino Silver

Pay attention - limited upside

The 3 months correlation between Stepan and Avino is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Stepan Company and Avino Silver Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avino Silver Gold and Stepan 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 Stepan Company are associated (or correlated) with Avino Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avino Silver Gold has no effect on the direction of Stepan i.e., Stepan and Avino Silver go up and down completely randomly.

Pair Corralation between Stepan and Avino Silver

If you would invest (100.00) in Avino Silver Gold on August 26, 2025 and sell it today you would earn a total of  100.00  from holding Avino Silver Gold or generate -100.0% return on investment over 90 days.

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

Stepan Company  vs.  Avino Silver Gold

Stepan Company

Risk-Adjusted Performance

Weakest

Over the last 90 days Stepan Company has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental indicators, Stepan is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Avino Silver Gold

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Avino Silver Gold are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Avino Silver displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Stepan and Avino Silver

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

The idea behind Stepan Company and Avino Silver Gold 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.