Correlation Between Aya Gold and Santacruz Silv
Can any of the company-specific risk be diversified away by investing in both Aya Gold and Santacruz Silv 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 Santacruz Silv 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 Santacruz Silv, you can compare the effects of market volatilities on Aya Gold and Santacruz Silv 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 Santacruz Silv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aya Gold and Santacruz Silv.
Diversification Opportunities for Aya Gold and Santacruz Silv
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aya and Santacruz is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Aya Gold Silver and Santacruz Silv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Santacruz Silv 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 Santacruz Silv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Santacruz Silv has no effect on the direction of Aya Gold i.e., Aya Gold and Santacruz Silv go up and down completely randomly.
Pair Corralation between Aya Gold and Santacruz Silv
Assuming the 90 days horizon Aya Gold Silver is expected to under-perform the Santacruz Silv. In addition to that, Aya Gold is 1.79 times more volatile than Santacruz Silv. It trades about -0.23 of its total potential returns per unit of risk. Santacruz Silv is currently generating about 0.77 per unit of volatility. If you would invest 29.00 in Santacruz Silv on August 24, 2024 and sell it today you would earn a total of 3.00 from holding Santacruz Silv or generate 10.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 18.18% |
| Values | Daily Returns |
Aya Gold Silver vs. Santacruz Silv
Performance |
| Timeline |
| Aya Gold Silver |
| Santacruz Silv |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Aya Gold and Santacruz Silv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aya Gold and Santacruz Silv
The main advantage of trading using opposite Aya Gold and Santacruz Silv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aya Gold position performs unexpectedly, Santacruz Silv 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 Santacruz Silv will offset losses from the drop in Santacruz Silv'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 |
| Santacruz Silv vs. Aya Gold Silver | Santacruz Silv vs. Bald Eagle Gold | Santacruz Silv vs. Arizona Silver Exploration | Santacruz Silv vs. Andean Precious 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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