Correlation Between Lion One and Aya Gold
Can any of the company-specific risk be diversified away by investing in both Lion One 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 Lion One and Aya Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lion One Metals and Aya Gold Silver, you can compare the effects of market volatilities on Lion One 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 Lion One with a short position of Aya Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and Aya Gold.
Diversification Opportunities for Lion One and Aya Gold
Good diversification
The 3 months correlation between Lion and Aya is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals 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 Lion One 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 Lion One Metals 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 Lion One i.e., Lion One and Aya Gold go up and down completely randomly.
Pair Corralation between Lion One and Aya Gold
Assuming the 90 days horizon Lion One Metals is expected to under-perform the Aya Gold. In addition to that, Lion One is 2.07 times more volatile than Aya Gold Silver. It trades about -0.23 of its total potential returns per unit of risk. Aya Gold Silver is currently generating about -0.02 per unit of volatility. If you would invest 1,177 in Aya Gold Silver on December 1, 2024 and sell it today you would lose (29.00) from holding Aya Gold Silver or give up 2.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion One Metals vs. Aya Gold Silver
Performance |
| Timeline |
| Lion One Metals |
| Aya Gold Silver |
Lion One and Aya Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and Aya Gold
The main advantage of trading using opposite Lion One and Aya Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One 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.The idea behind Lion One Metals and Aya Gold Silver pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Aya Gold vs. GoGold Resources | Aya Gold vs. AbraSilver Resource Corp | Aya Gold vs. Santacruz Silv | Aya Gold vs. Defiance Silver Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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