Correlation Between Aya Gold and Wenzhou Kangning
Can any of the company-specific risk be diversified away by investing in both Aya Gold and Wenzhou Kangning 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 Aya Gold and Wenzhou Kangning into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aya Gold Silver and Wenzhou Kangning Hospital, you can compare the effects of market volatilities on Aya Gold and Wenzhou Kangning 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 Aya Gold with a short position of Wenzhou Kangning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aya Gold and Wenzhou Kangning.
Diversification Opportunities for Aya Gold and Wenzhou Kangning
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aya and Wenzhou is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Aya Gold Silver and Wenzhou Kangning Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wenzhou Kangning Hospital and Aya Gold 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 Aya Gold Silver are associated (or correlated) with Wenzhou Kangning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wenzhou Kangning Hospital has no effect on the direction of Aya Gold i.e., Aya Gold and Wenzhou Kangning go up and down completely randomly.
Pair Corralation between Aya Gold and Wenzhou Kangning
Assuming the 90 days trading horizon Aya Gold Silver is expected to generate 1.45 times more return on investment than Wenzhou Kangning. However, Aya Gold is 1.45 times more volatile than Wenzhou Kangning Hospital. It trades about 0.08 of its potential returns per unit of risk. Wenzhou Kangning Hospital is currently generating about -0.24 per unit of risk. If you would invest 728.00 in Aya Gold Silver on October 26, 2024 and sell it today you would earn a total of 29.00 from holding Aya Gold Silver or generate 3.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aya Gold Silver vs. Wenzhou Kangning Hospital
Performance |
| Timeline |
| Aya Gold Silver |
| Wenzhou Kangning Hospital |
Aya Gold and Wenzhou Kangning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aya Gold and Wenzhou Kangning
The main advantage of trading using opposite Aya Gold and Wenzhou Kangning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aya Gold position performs unexpectedly, Wenzhou Kangning 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 Wenzhou Kangning will offset losses from the drop in Wenzhou Kangning's long position.The idea behind Aya Gold Silver and Wenzhou Kangning Hospital 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.| Wenzhou Kangning vs. STGEORGE MINING LTD | Wenzhou Kangning vs. Teradata Corp | Wenzhou Kangning vs. Aya Gold Silver | Wenzhou Kangning vs. NTT DATA |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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