Correlation Between Aya Gold and Ascot Resources
Can any of the company-specific risk be diversified away by investing in both Aya Gold and Ascot Resources 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 Ascot Resources 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 Ascot Resources, you can compare the effects of market volatilities on Aya Gold and Ascot Resources 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 Ascot Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aya Gold and Ascot Resources.
Diversification Opportunities for Aya Gold and Ascot Resources
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aya and Ascot is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Aya Gold Silver and Ascot Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascot Resources 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 Ascot Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascot Resources has no effect on the direction of Aya Gold i.e., Aya Gold and Ascot Resources go up and down completely randomly.
Pair Corralation between Aya Gold and Ascot Resources
Assuming the 90 days trading horizon Aya Gold Silver is expected to under-perform the Ascot Resources. But the stock apears to be less risky and, when comparing its historical volatility, Aya Gold Silver is 1.46 times less risky than Ascot Resources. The stock trades about -0.21 of its potential returns per unit of risk. The Ascot Resources is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 28.00 in Ascot Resources on September 3, 2024 and sell it today you would lose (6.00) from holding Ascot Resources or give up 21.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aya Gold Silver vs. Ascot Resources
Performance |
| Timeline |
| Aya Gold Silver |
| Ascot Resources |
Aya Gold and Ascot Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aya Gold and Ascot Resources
The main advantage of trading using opposite Aya Gold and Ascot Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aya Gold position performs unexpectedly, Ascot Resources 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 Ascot Resources will offset losses from the drop in Ascot Resources' long position.| Aya Gold vs. GoGold Resources | Aya Gold vs. AbraSilver Resource Corp | Aya Gold vs. SilverCrest Metals | Aya Gold vs. Santacruz Silv |
| Ascot Resources vs. High Liner Foods | Ascot Resources vs. QC Copper and | Ascot Resources vs. Slate Grocery REIT | Ascot Resources vs. Diamond Estates Wines |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges |