Correlation Between Aya Gold and CVS HEALTH
Can any of the company-specific risk be diversified away by investing in both Aya Gold and CVS HEALTH 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 CVS HEALTH 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 CVS HEALTH CDR, you can compare the effects of market volatilities on Aya Gold and CVS HEALTH 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 CVS HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aya Gold and CVS HEALTH.
Diversification Opportunities for Aya Gold and CVS HEALTH
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aya and CVS is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Aya Gold Silver and CVS HEALTH CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVS HEALTH CDR 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 CVS HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVS HEALTH CDR has no effect on the direction of Aya Gold i.e., Aya Gold and CVS HEALTH go up and down completely randomly.
Pair Corralation between Aya Gold and CVS HEALTH
Assuming the 90 days trading horizon Aya Gold Silver is expected to under-perform the CVS HEALTH. In addition to that, Aya Gold is 1.6 times more volatile than CVS HEALTH CDR. It trades about -0.21 of its total potential returns per unit of risk. CVS HEALTH CDR is currently generating about 0.08 per unit of volatility. If you would invest 1,409 in CVS HEALTH CDR on September 1, 2024 and sell it today you would earn a total of 69.00 from holding CVS HEALTH CDR or generate 4.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aya Gold Silver vs. CVS HEALTH CDR
Performance |
| Timeline |
| Aya Gold Silver |
| CVS HEALTH CDR |
Aya Gold and CVS HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aya Gold and CVS HEALTH
The main advantage of trading using opposite Aya Gold and CVS HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aya Gold position performs unexpectedly, CVS HEALTH 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 CVS HEALTH will offset losses from the drop in CVS HEALTH'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 |
| CVS HEALTH vs. Extendicare | CVS HEALTH vs. Sienna Senior Living | CVS HEALTH vs. Chemtrade Logistics Income | CVS HEALTH vs. iShares Canadian HYBrid |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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