Correlation Between Monument Mining and Aya Gold
Can any of the company-specific risk be diversified away by investing in both Monument Mining 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 Monument Mining and Aya Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monument Mining Limited and Aya Gold Silver, you can compare the effects of market volatilities on Monument Mining 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 Monument Mining with a short position of Aya Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monument Mining and Aya Gold.
Diversification Opportunities for Monument Mining and Aya Gold
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Monument and Aya is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Monument Mining Limited 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 Monument Mining 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 Monument Mining Limited 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 Monument Mining i.e., Monument Mining and Aya Gold go up and down completely randomly.
Pair Corralation between Monument Mining and Aya Gold
Assuming the 90 days trading horizon Monument Mining Limited is expected to generate 1.84 times more return on investment than Aya Gold. However, Monument Mining is 1.84 times more volatile than Aya Gold Silver. It trades about 0.26 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 17.00 in Monument Mining Limited on October 10, 2024 and sell it today you would earn a total of 4.00 from holding Monument Mining Limited or generate 23.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Monument Mining Limited vs. Aya Gold Silver
Performance |
| Timeline |
| Monument Mining |
| Aya Gold Silver |
Monument Mining and Aya Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monument Mining and Aya Gold
The main advantage of trading using opposite Monument Mining and Aya Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monument Mining 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.| Monument Mining vs. ACCSYS TECHPLC EO | Monument Mining vs. CN MODERN DAIRY | Monument Mining vs. Sunny Optical Technology | Monument Mining vs. VELA TECHNOLPLC LS 0001 |
| 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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