Correlation Between Aya Gold and Sun Peak
Can any of the company-specific risk be diversified away by investing in both Aya Gold and Sun Peak 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 Sun Peak 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 Sun Peak Metals, you can compare the effects of market volatilities on Aya Gold and Sun Peak 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 Sun Peak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aya Gold and Sun Peak.
Diversification Opportunities for Aya Gold and Sun Peak
Very poor diversification
The 3 months correlation between Aya and Sun is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Aya Gold Silver and Sun Peak Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Peak Metals 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 Sun Peak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Peak Metals has no effect on the direction of Aya Gold i.e., Aya Gold and Sun Peak go up and down completely randomly.
Pair Corralation between Aya Gold and Sun Peak
Assuming the 90 days trading horizon Aya Gold Silver is expected to under-perform the Sun Peak. But the stock apears to be less risky and, when comparing its historical volatility, Aya Gold Silver is 1.64 times less risky than Sun Peak. The stock trades about -0.01 of its potential returns per unit of risk. The Sun Peak Metals is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 28.00 in Sun Peak Metals on November 4, 2024 and sell it today you would earn a total of 3.00 from holding Sun Peak Metals or generate 10.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aya Gold Silver vs. Sun Peak Metals
Performance |
| Timeline |
| Aya Gold Silver |
| Sun Peak Metals |
Aya Gold and Sun Peak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aya Gold and Sun Peak
The main advantage of trading using opposite Aya Gold and Sun Peak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aya Gold position performs unexpectedly, Sun Peak 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 Sun Peak will offset losses from the drop in Sun Peak's long position.| Aya Gold vs. GoGold Resources | Aya Gold vs. AbraSilver Resource Corp | Aya Gold vs. SilverCrest Metals | Aya Gold vs. Santacruz Silv |
| Sun Peak vs. Air Canada | Sun Peak vs. Calian Technologies | Sun Peak vs. Sangoma Technologies Corp | Sun Peak vs. Micron Technology, |
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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