Correlation Between Aston Bay and Pinetree Capital
Can any of the company-specific risk be diversified away by investing in both Aston Bay and Pinetree Capital 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 Aston Bay and Pinetree Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aston Bay Holdings and Pinetree Capital, you can compare the effects of market volatilities on Aston Bay and Pinetree Capital 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 Aston Bay with a short position of Pinetree Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aston Bay and Pinetree Capital.
Diversification Opportunities for Aston Bay and Pinetree Capital
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aston and Pinetree is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Aston Bay Holdings and Pinetree Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinetree Capital and Aston Bay 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 Aston Bay Holdings are associated (or correlated) with Pinetree Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinetree Capital has no effect on the direction of Aston Bay i.e., Aston Bay and Pinetree Capital go up and down completely randomly.
Pair Corralation between Aston Bay and Pinetree Capital
Assuming the 90 days horizon Aston Bay Holdings is expected to under-perform the Pinetree Capital. In addition to that, Aston Bay is 1.14 times more volatile than Pinetree Capital. It trades about -0.24 of its total potential returns per unit of risk. Pinetree Capital is currently generating about 0.41 per unit of volatility. If you would invest 900.00 in Pinetree Capital on September 2, 2024 and sell it today you would earn a total of 350.00 from holding Pinetree Capital or generate 38.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aston Bay Holdings vs. Pinetree Capital
Performance |
| Timeline |
| Aston Bay Holdings |
| Pinetree Capital |
Aston Bay and Pinetree Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aston Bay and Pinetree Capital
The main advantage of trading using opposite Aston Bay and Pinetree Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aston Bay position performs unexpectedly, Pinetree Capital 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 Pinetree Capital will offset losses from the drop in Pinetree Capital's long position.| Aston Bay vs. Laramide Resources | Aston Bay vs. Chibougamau Independent Mines | Aston Bay vs. Avrupa Minerals | Aston Bay vs. Thunderstruck Resources |
| Pinetree Capital vs. Laramide Resources | Pinetree Capital vs. Mega Uranium | Pinetree Capital vs. Aston Bay Holdings | Pinetree Capital vs. Ur Energy |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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