Correlation Between Aya Gold and Dream Industrial
Can any of the company-specific risk be diversified away by investing in both Aya Gold and Dream Industrial 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 Dream Industrial 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 Dream Industrial Real, you can compare the effects of market volatilities on Aya Gold and Dream Industrial 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 Dream Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aya Gold and Dream Industrial.
Diversification Opportunities for Aya Gold and Dream Industrial
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aya and Dream is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Aya Gold Silver and Dream Industrial Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dream Industrial Real 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 Dream Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dream Industrial Real has no effect on the direction of Aya Gold i.e., Aya Gold and Dream Industrial go up and down completely randomly.
Pair Corralation between Aya Gold and Dream Industrial
Assuming the 90 days trading horizon Aya Gold Silver is expected to under-perform the Dream Industrial. In addition to that, Aya Gold is 4.68 times more volatile than Dream Industrial Real. It trades about -0.21 of its total potential returns per unit of risk. Dream Industrial Real is currently generating about -0.15 per unit of volatility. If you would invest 1,325 in Dream Industrial Real on September 3, 2024 and sell it today you would lose (54.00) from holding Dream Industrial Real or give up 4.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aya Gold Silver vs. Dream Industrial Real
Performance |
| Timeline |
| Aya Gold Silver |
| Dream Industrial Real |
Aya Gold and Dream Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aya Gold and Dream Industrial
The main advantage of trading using opposite Aya Gold and Dream Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aya Gold position performs unexpectedly, Dream Industrial 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 Dream Industrial will offset losses from the drop in Dream Industrial's long position.| Aya Gold vs. GoGold Resources | Aya Gold vs. AbraSilver Resource Corp | Aya Gold vs. SilverCrest Metals | Aya Gold vs. Santacruz Silv |
| Dream Industrial vs. Granite Real Estate | Dream Industrial vs. NorthWest Healthcare Properties | Dream Industrial vs. Choice Properties Real | Dream Industrial vs. Canadian Apartment Properties |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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