Correlation Between Addtech AB and Aya Gold
Can any of the company-specific risk be diversified away by investing in both Addtech AB and Aya Gold 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 Addtech AB and Aya Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Addtech AB and Aya Gold Silver, you can compare the effects of market volatilities on Addtech AB and Aya Gold 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 Addtech AB with a short position of Aya Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addtech AB and Aya Gold.
Diversification Opportunities for Addtech AB and Aya Gold
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Addtech and Aya is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Addtech AB and Aya Gold Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aya Gold Silver and Addtech AB 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 Addtech AB are associated (or correlated) with Aya Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aya Gold Silver has no effect on the direction of Addtech AB i.e., Addtech AB and Aya Gold go up and down completely randomly.
Pair Corralation between Addtech AB and Aya Gold
Assuming the 90 days trading horizon Addtech AB is expected to generate 0.41 times more return on investment than Aya Gold. However, Addtech AB is 2.47 times less risky than Aya Gold. It trades about -0.08 of its potential returns per unit of risk. Aya Gold Silver is currently generating about -0.46 per unit of risk. If you would invest 2,698 in Addtech AB on October 10, 2024 and sell it today you would lose (44.00) from holding Addtech AB or give up 1.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Addtech AB vs. Aya Gold Silver
Performance |
| Timeline |
| Addtech AB |
| Aya Gold Silver |
Addtech AB and Aya Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Addtech AB and Aya Gold
The main advantage of trading using opposite Addtech AB and Aya Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addtech AB position performs unexpectedly, Aya Gold 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 Aya Gold will offset losses from the drop in Aya Gold's long position.| Addtech AB vs. GameStop Corp | Addtech AB vs. Marie Brizard Wine | Addtech AB vs. PENN NATL GAMING | Addtech AB vs. OURGAME INTHOLDL 00005 |
| Aya Gold vs. ORMAT TECHNOLOGIES | Aya Gold vs. Sunny Optical Technology | Aya Gold vs. CARSALESCOM | Aya Gold vs. Kingdee International Software |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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