Correlation Between Aya Gold and Canadian Imperial
Can any of the company-specific risk be diversified away by investing in both Aya Gold and Canadian Imperial 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 Canadian Imperial 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 Canadian Imperial Bank, you can compare the effects of market volatilities on Aya Gold and Canadian Imperial 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 Canadian Imperial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aya Gold and Canadian Imperial.
Diversification Opportunities for Aya Gold and Canadian Imperial
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aya and Canadian is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Aya Gold Silver and Canadian Imperial Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Imperial Bank 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 Canadian Imperial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian Imperial Bank has no effect on the direction of Aya Gold i.e., Aya Gold and Canadian Imperial go up and down completely randomly.
Pair Corralation between Aya Gold and Canadian Imperial
Assuming the 90 days trading horizon Aya Gold Silver is expected to generate 4.79 times more return on investment than Canadian Imperial. However, Aya Gold is 4.79 times more volatile than Canadian Imperial Bank. It trades about 0.05 of its potential returns per unit of risk. Canadian Imperial Bank is currently generating about 0.12 per unit of risk. If you would invest 918.00 in Aya Gold Silver on September 1, 2024 and sell it today you would earn a total of 400.00 from holding Aya Gold Silver or generate 43.57% 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. Canadian Imperial Bank
Performance |
| Timeline |
| Aya Gold Silver |
| Canadian Imperial Bank |
Aya Gold and Canadian Imperial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aya Gold and Canadian Imperial
The main advantage of trading using opposite Aya Gold and Canadian Imperial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aya Gold position performs unexpectedly, Canadian Imperial 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 Canadian Imperial will offset losses from the drop in Canadian Imperial's long position.| Aya Gold vs. First Majestic Silver | Aya Gold vs. Ivanhoe Energy | Aya Gold vs. Orezone Gold Corp | Aya Gold vs. Faraday Copper Corp |
| Canadian Imperial vs. Capstone Mining Corp | Canadian Imperial vs. Vizsla Silver Corp | Canadian Imperial vs. Renoworks Software | Canadian Imperial vs. Aya Gold Silver |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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