NEW YORK (TheStreet) -- Our risk-adjusted calculation methodology for precious metals during the past six-months indicates that platinum group metal stocks outperformed gold and silver stocks overall, even though gold stocks gained during the market correction between April 23 and June 7.
North American Palladium
on a risk-adjusted basis by 37.0% and 18.6%, respectively. Another, PGM stock
Platinum Group Metals
outperformed the index by 19.5% on a risk-adjusted basis during the past six-months.
Tanzanian Royalty Exploration
Golden Star Resources
were the only gold stocks to dominate or match PGM stocks, overriding the index by 52.9%, 48.2%, 22.0%, 21.6%, 21.5% and 18.5%, respectively, on a risk-adjusted basis.
US Gold, New Gold and Eldorado
. Tanzanian Royalty's performance can be attributed to its low-beta value of 0.69, which reduces the required return for a given risk.
On the other hand, PGM producers, Stillwater Mining, North American Palladium and Platinum Group Metals, have high equity betas of 2.17, 1.81 and 1.29, respectively. These higher-beta values, compared to gold stocks, reduced the risk-adjusted performance of PGM producers.
, with respective equity betas of 0.77, 0.82 and 0.88, trounced the S&P 500 on a risk-adjusted basis by 6.3%, 7.8% and 8.5%, respectively.
Other gold producers,
Harmony Gold Mining
, underperformed the index on a risk-adjusted basis by 1.6%, 4.3%, 4.7% and 10.5%, respectively.
The underperformance is more prevalent for silver stocks.
Coeur d'Alene Mines
Silver Standard Resources
outstripped the index by 17.3%, 15.8%, 14.1% and 3.9%, respectively, on a risk-adjusted basis.
, was the only silver stock to match PGM stocks, with a risk-adjusted gain of 20.7% over the index. Other silver stocks
Compania de Minas
Pan American Silver
, outperformed the index on a risk-adjusted basis by 13.1%, 7.9%, and 2.8%, respectively.