Correlation Between CMC Metals and Summa Silver
Can any of the company-specific risk be diversified away by investing in both CMC Metals and Summa 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 CMC Metals and Summa Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CMC Metals and Summa Silver Corp, you can compare the effects of market volatilities on CMC Metals and Summa 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 CMC Metals with a short position of Summa Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of CMC Metals and Summa Silver.
Diversification Opportunities for CMC Metals and Summa Silver
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CMC and Summa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CMC Metals and Summa Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summa Silver Corp and CMC Metals 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 CMC Metals are associated (or correlated) with Summa Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summa Silver Corp has no effect on the direction of CMC Metals i.e., CMC Metals and Summa Silver go up and down completely randomly.
Pair Corralation between CMC Metals and Summa Silver
If you would invest 9.16 in CMC Metals on July 20, 2025 and sell it today you would earn a total of 4.84 from holding CMC Metals or generate 52.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
CMC Metals vs. Summa Silver Corp
Performance |
| Timeline |
| CMC Metals |
| Summa Silver Corp |
Risk-Adjusted Performance
Weakest
Weak | Strong |
CMC Metals and Summa Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CMC Metals and Summa Silver
The main advantage of trading using opposite CMC Metals and Summa Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CMC Metals position performs unexpectedly, Summa 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 Summa Silver will offset losses from the drop in Summa Silver's long position.| CMC Metals vs. Mountain Boy Minerals | CMC Metals vs. Franklin Mining | CMC Metals vs. Huntington Exploration | CMC Metals vs. North Bay Resources |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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