Correlation Between Arbor Metals and Aya Gold
Can any of the company-specific risk be diversified away by investing in both Arbor Metals and Aya Gold 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 Arbor Metals and Aya Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arbor Metals Corp and Aya Gold Silver, you can compare the effects of market volatilities on Arbor Metals and Aya Gold 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 Arbor Metals with a short position of Aya Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arbor Metals and Aya Gold.
Diversification Opportunities for Arbor Metals and Aya Gold
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Arbor and Aya is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Arbor Metals Corp and Aya Gold Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aya Gold Silver and Arbor 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 Arbor Metals Corp are associated (or correlated) with Aya Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aya Gold Silver has no effect on the direction of Arbor Metals i.e., Arbor Metals and Aya Gold go up and down completely randomly.
Pair Corralation between Arbor Metals and Aya Gold
Assuming the 90 days horizon Arbor Metals Corp is expected to under-perform the Aya Gold. But the stock apears to be less risky and, when comparing its historical volatility, Arbor Metals Corp is 2.04 times less risky than Aya Gold. The stock trades about -0.46 of its potential returns per unit of risk. The Aya Gold Silver is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 1,549 in Aya Gold Silver on September 12, 2024 and sell it today you would lose (269.00) from holding Aya Gold Silver or give up 17.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arbor Metals Corp vs. Aya Gold Silver
Performance |
| Timeline |
| Arbor Metals Corp |
| Aya Gold Silver |
Arbor Metals and Aya Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arbor Metals and Aya Gold
The main advantage of trading using opposite Arbor Metals and Aya Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arbor Metals position performs unexpectedly, Aya Gold 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 Aya Gold will offset losses from the drop in Aya Gold's long position.| Arbor Metals vs. Kiplin Metals | Arbor Metals vs. Pure Energy Minerals | Arbor Metals vs. Noram Lithium Corp | Arbor Metals vs. Minnova Corp |
| Aya Gold vs. Ressources Minieres Radisson | Aya Gold vs. Galantas Gold Corp | Aya Gold vs. Red Pine Exploration | Aya Gold vs. Kore Mining |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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