Correlation Between Helios Fairfax and Aya Gold
Can any of the company-specific risk be diversified away by investing in both Helios Fairfax 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 Helios Fairfax and Aya Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Helios Fairfax Partners and Aya Gold Silver, you can compare the effects of market volatilities on Helios Fairfax 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 Helios Fairfax with a short position of Aya Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helios Fairfax and Aya Gold.
Diversification Opportunities for Helios Fairfax and Aya Gold
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Helios and Aya is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Helios Fairfax Partners 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 Helios Fairfax 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 Helios Fairfax Partners 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 Helios Fairfax i.e., Helios Fairfax and Aya Gold go up and down completely randomly.
Pair Corralation between Helios Fairfax and Aya Gold
Assuming the 90 days trading horizon Helios Fairfax is expected to generate 4.57 times less return on investment than Aya Gold. In addition to that, Helios Fairfax is 1.23 times more volatile than Aya Gold Silver. It trades about 0.01 of its total potential returns per unit of risk. Aya Gold Silver is currently generating about 0.04 per unit of volatility. If you would invest 763.00 in Aya Gold Silver on October 25, 2024 and sell it today you would earn a total of 380.00 from holding Aya Gold Silver or generate 49.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Helios Fairfax Partners vs. Aya Gold Silver
Performance |
| Timeline |
| Helios Fairfax Partners |
| Aya Gold Silver |
Helios Fairfax and Aya Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Helios Fairfax and Aya Gold
The main advantage of trading using opposite Helios Fairfax and Aya Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helios Fairfax 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.| Helios Fairfax vs. Aya Gold Silver | Helios Fairfax vs. Rogers Communications | Helios Fairfax vs. NeXGold Mining Corp | Helios Fairfax vs. Algonquin Power Utilities |
| Aya Gold vs. GoGold Resources | Aya Gold vs. AbraSilver Resource Corp | Aya Gold vs. SilverCrest Metals | Aya Gold vs. Santacruz Silv |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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