Correlation Between AMAG Austria and Aya Gold
Can any of the company-specific risk be diversified away by investing in both AMAG Austria 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 AMAG Austria and Aya Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMAG Austria Metall and Aya Gold Silver, you can compare the effects of market volatilities on AMAG Austria 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 AMAG Austria with a short position of Aya Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMAG Austria and Aya Gold.
Diversification Opportunities for AMAG Austria and Aya Gold
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AMAG and Aya is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding AMAG Austria Metall 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 AMAG Austria 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 AMAG Austria Metall 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 AMAG Austria i.e., AMAG Austria and Aya Gold go up and down completely randomly.
Pair Corralation between AMAG Austria and Aya Gold
Assuming the 90 days horizon AMAG Austria Metall is expected to under-perform the Aya Gold. But the stock apears to be less risky and, when comparing its historical volatility, AMAG Austria Metall is 2.69 times less risky than Aya Gold. The stock trades about -0.03 of its potential returns per unit of risk. The Aya Gold Silver is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 875.00 in Aya Gold Silver on November 7, 2024 and sell it today you would lose (97.00) from holding Aya Gold Silver or give up 11.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMAG Austria Metall vs. Aya Gold Silver
Performance |
| Timeline |
| AMAG Austria Metall |
| Aya Gold Silver |
AMAG Austria and Aya Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMAG Austria and Aya Gold
The main advantage of trading using opposite AMAG Austria and Aya Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMAG Austria 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.| AMAG Austria vs. Norsk Hydro ASA | AMAG Austria vs. Norsk Hydro ASA | AMAG Austria vs. Aluminum of | AMAG Austria vs. Alcoa Corp |
| Aya Gold vs. JSC Halyk bank | Aya Gold vs. CHIBA BANK | Aya Gold vs. Meta Financial Group | Aya Gold vs. Virtu Financial |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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