Correlation Between Invesco Physical and Fortuna Silver

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

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

Diversification Opportunities for Invesco Physical and Fortuna Silver

0.52

Correlation Coefficient

Invesco Physical  Fortuna Silver

Very weak diversification

The 3 months correlation between Invesco and Fortuna is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Physical Silver and Fortuna Silver Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortuna Silver Mines and Invesco Physical 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 Invesco Physical Silver are associated (or correlated) with Fortuna Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortuna Silver Mines has no effect on the direction of Invesco Physical i.e., Invesco Physical and Fortuna Silver go up and down completely randomly.

Pair Corralation between Invesco Physical and Fortuna Silver

Assuming the 90 days trading horizon Invesco Physical is expected to generate 1.66 times less return on investment than Fortuna Silver. But when comparing it to its historical volatility, Invesco Physical Silver is 3.48 times less risky than Fortuna Silver. It trades about 0.22 of its potential returns per unit of risk. Fortuna Silver Mines is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  831.00  in Fortuna Silver Mines on April 25, 2025 and sell it today you would earn a total of  118.00  from holding Fortuna Silver Mines or generate 14.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	54.84%
Values	Daily Returns

Invesco Physical Silver  vs.  Fortuna Silver Mines

Invesco Physical Silver

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Invesco Physical Silver are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Invesco Physical unveiled solid returns over the last few months and may actually be approaching a breakup point.

Fortuna Silver Mines

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fortuna Silver Mines are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Fortuna Silver unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Invesco Physical and Fortuna Silver

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

The idea behind Invesco Physical Silver and Fortuna Silver Mines 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..