Correlation Between Kootenay Silver and Aya Gold
Can any of the company-specific risk be diversified away by investing in both Kootenay Silver 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 Kootenay Silver and Aya Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kootenay Silver and Aya Gold Silver, you can compare the effects of market volatilities on Kootenay Silver 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 Kootenay Silver with a short position of Aya Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kootenay Silver and Aya Gold.
Diversification Opportunities for Kootenay Silver and Aya Gold
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kootenay and Aya is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Kootenay Silver 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 Kootenay Silver 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 Kootenay Silver 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 Kootenay Silver i.e., Kootenay Silver and Aya Gold go up and down completely randomly.
Pair Corralation between Kootenay Silver and Aya Gold
Assuming the 90 days horizon Kootenay Silver is expected to generate 1.12 times more return on investment than Aya Gold. However, Kootenay Silver is 1.12 times more volatile than Aya Gold Silver. It trades about -0.18 of its potential returns per unit of risk. Aya Gold Silver is currently generating about -0.22 per unit of risk. If you would invest 102.00 in Kootenay Silver on August 28, 2024 and sell it today you would lose (27.00) from holding Kootenay Silver or give up 26.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kootenay Silver vs. Aya Gold Silver
Performance |
| Timeline |
| Kootenay Silver |
| Aya Gold Silver |
Kootenay Silver and Aya Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kootenay Silver and Aya Gold
The main advantage of trading using opposite Kootenay Silver and Aya Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kootenay Silver 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.| Kootenay Silver vs. Ascendant Resources | Kootenay Silver vs. Cantex Mine Development | Kootenay Silver vs. Amarc Resources | Kootenay Silver vs. Sterling Metals Corp |
| Aya Gold vs. Apollo Silver Corp | Aya Gold vs. Arizona Silver Exploration | Aya Gold vs. Guanajuato Silver | Aya Gold vs. Bald Eagle Gold |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Stocks Directory Find actively traded stocks across global markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |