Correlation Between Aya Gold and Information Services
Can any of the company-specific risk be diversified away by investing in both Aya Gold and Information Services 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 Information Services 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 Information Services, you can compare the effects of market volatilities on Aya Gold and Information Services 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 Information Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aya Gold and Information Services.
Diversification Opportunities for Aya Gold and Information Services
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aya and Information is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Aya Gold Silver and Information Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Information Services 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 Information Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Information Services has no effect on the direction of Aya Gold i.e., Aya Gold and Information Services go up and down completely randomly.
Pair Corralation between Aya Gold and Information Services
Assuming the 90 days trading horizon Aya Gold Silver is expected to generate 2.52 times more return on investment than Information Services. However, Aya Gold is 2.52 times more volatile than Information Services. It trades about 0.06 of its potential returns per unit of risk. Information Services is currently generating about 0.13 per unit of risk. If you would invest 1,109 in Aya Gold Silver on October 25, 2024 and sell it today you would earn a total of 34.00 from holding Aya Gold Silver or generate 3.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aya Gold Silver vs. Information Services
Performance |
| Timeline |
| Aya Gold Silver |
| Information Services |
Aya Gold and Information Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aya Gold and Information Services
The main advantage of trading using opposite Aya Gold and Information Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aya Gold position performs unexpectedly, Information Services 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 Information Services will offset losses from the drop in Information Services' long position.| Aya Gold vs. GoGold Resources | Aya Gold vs. AbraSilver Resource Corp | Aya Gold vs. SilverCrest Metals | Aya Gold vs. Santacruz Silv |
| Information Services vs. Canadian Utilities Limited | Information Services vs. CVW CleanTech | Information Services vs. Forsys Metals Corp | Information Services vs. Nicola Mining |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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