Correlation Between Methanex and Americas Silver
Can any of the company-specific risk be diversified away by investing in both Methanex and Americas 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 Methanex and Americas Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Methanex and Americas Silver Corp, you can compare the effects of market volatilities on Methanex and Americas 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 Methanex with a short position of Americas Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Methanex and Americas Silver.
Diversification Opportunities for Methanex and Americas Silver
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Methanex and Americas is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Methanex and Americas Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Americas Silver Corp and Methanex 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 Methanex are associated (or correlated) with Americas Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Americas Silver Corp has no effect on the direction of Methanex i.e., Methanex and Americas Silver go up and down completely randomly.
Pair Corralation between Methanex and Americas Silver
Given the investment horizon of 90 days Methanex is expected to generate 122.74 times less return on investment than Americas Silver. But when comparing it to its historical volatility, Methanex is 1.59 times less risky than Americas Silver. It trades about 0.0 of its potential returns per unit of risk. Americas Silver Corp is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 240.00 in Americas Silver Corp on August 27, 2025 and sell it today you would earn a total of 155.00 from holding Americas Silver Corp or generate 64.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Methanex vs. Americas Silver Corp
Performance |
| Timeline |
| Methanex |
| Americas Silver Corp |
Methanex and Americas Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Methanex and Americas Silver
The main advantage of trading using opposite Methanex and Americas Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Methanex position performs unexpectedly, Americas 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 Americas Silver will offset losses from the drop in Americas Silver's long position.| Methanex vs. United Airlines Holdings | Methanex vs. Bridgford Foods | Methanex vs. Puma Biotechnology | Methanex vs. BG Foods |
| Americas Silver vs. Canoe Mining Ventures | Americas Silver vs. Burlington Stores | Americas Silver vs. Retail Food Group | Americas Silver vs. Costco Wholesale Corp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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