Correlation Between Aya Gold and Geely Automobile
Can any of the company-specific risk be diversified away by investing in both Aya Gold and Geely Automobile 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 Geely Automobile 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 Geely Automobile Holdings, you can compare the effects of market volatilities on Aya Gold and Geely Automobile 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 Geely Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aya Gold and Geely Automobile.
Diversification Opportunities for Aya Gold and Geely Automobile
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aya and Geely is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Aya Gold Silver and Geely Automobile Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geely Automobile Holdings 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 Geely Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geely Automobile Holdings has no effect on the direction of Aya Gold i.e., Aya Gold and Geely Automobile go up and down completely randomly.
Pair Corralation between Aya Gold and Geely Automobile
Assuming the 90 days trading horizon Aya Gold Silver is expected to generate 2.41 times more return on investment than Geely Automobile. However, Aya Gold is 2.41 times more volatile than Geely Automobile Holdings. It trades about 0.03 of its potential returns per unit of risk. Geely Automobile Holdings is currently generating about 0.01 per unit of risk. If you would invest 755.00 in Aya Gold Silver on November 2, 2024 and sell it today you would earn a total of 8.00 from holding Aya Gold Silver or generate 1.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aya Gold Silver vs. Geely Automobile Holdings
Performance |
| Timeline |
| Aya Gold Silver |
| Geely Automobile Holdings |
Aya Gold and Geely Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aya Gold and Geely Automobile
The main advantage of trading using opposite Aya Gold and Geely Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aya Gold position performs unexpectedly, Geely Automobile 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 Geely Automobile will offset losses from the drop in Geely Automobile's long position.| Aya Gold vs. GRUPO CARSO A1 | Aya Gold vs. CarsalesCom | Aya Gold vs. RCI Hospitality Holdings | Aya Gold vs. National Health Investors |
| Geely Automobile vs. Telecom Argentina SA | Geely Automobile vs. Highlight Communications AG | Geely Automobile vs. CanSino Biologics | Geely Automobile vs. CENTURIA OFFICE REIT |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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