Correlation Between Aya Gold and Transalta
Can any of the company-specific risk be diversified away by investing in both Aya Gold and Transalta 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 Transalta 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 Transalta A Cum, you can compare the effects of market volatilities on Aya Gold and Transalta 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 Transalta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aya Gold and Transalta.
Diversification Opportunities for Aya Gold and Transalta
Very good diversification
The 3 months correlation between Aya and Transalta is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Aya Gold Silver and Transalta A Cum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transalta A Cum 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 Transalta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transalta A Cum has no effect on the direction of Aya Gold i.e., Aya Gold and Transalta go up and down completely randomly.
Pair Corralation between Aya Gold and Transalta
Assuming the 90 days trading horizon Aya Gold Silver is expected to generate 9.42 times more return on investment than Transalta. However, Aya Gold is 9.42 times more volatile than Transalta A Cum. It trades about 0.1 of its potential returns per unit of risk. Transalta A Cum is currently generating about 0.61 per unit of risk. If you would invest 1,180 in Aya Gold Silver on September 15, 2024 and sell it today you would earn a total of 75.00 from holding Aya Gold Silver or generate 6.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Aya Gold Silver vs. Transalta A Cum
Performance |
| Timeline |
| Aya Gold Silver |
| Transalta A Cum |
Aya Gold and Transalta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aya Gold and Transalta
The main advantage of trading using opposite Aya Gold and Transalta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aya Gold position performs unexpectedly, Transalta 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 Transalta will offset losses from the drop in Transalta's long position.| Aya Gold vs. GoGold Resources | Aya Gold vs. AbraSilver Resource Corp | Aya Gold vs. SilverCrest Metals | Aya Gold vs. Santacruz Silv |
| Transalta vs. Brookfield Renewable Partners | Transalta vs. TransAlta Corp | Transalta vs. Capstone Infrastructure Corp | Transalta vs. Maxim Power Corp |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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