Correlation Between Aya Gold and Bald Eagle
Can any of the company-specific risk be diversified away by investing in both Aya Gold and Bald Eagle 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 Bald Eagle 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 Bald Eagle Gold, you can compare the effects of market volatilities on Aya Gold and Bald Eagle 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 Bald Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aya Gold and Bald Eagle.
Diversification Opportunities for Aya Gold and Bald Eagle
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aya and Bald is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Aya Gold Silver and Bald Eagle Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bald Eagle Gold 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 Bald Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bald Eagle Gold has no effect on the direction of Aya Gold i.e., Aya Gold and Bald Eagle go up and down completely randomly.
Pair Corralation between Aya Gold and Bald Eagle
Assuming the 90 days horizon Aya Gold Silver is expected to generate 0.62 times more return on investment than Bald Eagle. However, Aya Gold Silver is 1.62 times less risky than Bald Eagle. It trades about 0.05 of its potential returns per unit of risk. Bald Eagle Gold is currently generating about -0.02 per unit of risk. If you would invest 738.00 in Aya Gold Silver on August 24, 2024 and sell it today you would earn a total of 213.00 from holding Aya Gold Silver or generate 28.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Aya Gold Silver vs. Bald Eagle Gold
Performance |
| Timeline |
| Aya Gold Silver |
| Bald Eagle Gold |
Aya Gold and Bald Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aya Gold and Bald Eagle
The main advantage of trading using opposite Aya Gold and Bald Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aya Gold position performs unexpectedly, Bald Eagle 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 Bald Eagle will offset losses from the drop in Bald Eagle's long position.| Aya Gold vs. Bald Eagle Gold | Aya Gold vs. Silver One Resources | Aya Gold vs. Discovery Metals Corp | Aya Gold vs. Silver Hammer Mining |
| Bald Eagle vs. Andean Precious Metals | Bald Eagle vs. Apollo Silver Corp | Bald Eagle vs. Silver Hammer Mining | Bald Eagle vs. Guanajuato Silver |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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