Correlation Between Aya Gold and Saville Resources
Can any of the company-specific risk be diversified away by investing in both Aya Gold and Saville Resources 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 Saville Resources 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 Saville Resources, you can compare the effects of market volatilities on Aya Gold and Saville Resources 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 Saville Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aya Gold and Saville Resources.
Diversification Opportunities for Aya Gold and Saville Resources
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aya and Saville is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Aya Gold Silver and Saville Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saville Resources 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 Saville Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saville Resources has no effect on the direction of Aya Gold i.e., Aya Gold and Saville Resources go up and down completely randomly.
Pair Corralation between Aya Gold and Saville Resources
Assuming the 90 days trading horizon Aya Gold is expected to generate 9.58 times less return on investment than Saville Resources. But when comparing it to its historical volatility, Aya Gold Silver is 5.25 times less risky than Saville Resources. It trades about 0.07 of its potential returns per unit of risk. Saville Resources is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 44.00 in Saville Resources on November 3, 2024 and sell it today you would earn a total of 2.00 from holding Saville Resources or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 17.39% |
| Values | Daily Returns |
Aya Gold Silver vs. Saville Resources
Performance |
| Timeline |
| Aya Gold Silver |
| Saville Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Aya Gold and Saville Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aya Gold and Saville Resources
The main advantage of trading using opposite Aya Gold and Saville Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aya Gold position performs unexpectedly, Saville Resources 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 Saville Resources will offset losses from the drop in Saville Resources' long position.| Aya Gold vs. GoGold Resources | Aya Gold vs. AbraSilver Resource Corp | Aya Gold vs. SilverCrest Metals | Aya Gold vs. Santacruz Silv |
| Saville Resources vs. Costco Wholesale Corp | Saville Resources vs. Pace Metals | Saville Resources vs. Magna Mining | Saville Resources vs. Black Mammoth Metals |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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