Correlation Between Maple Leaf and Aya Gold
Can any of the company-specific risk be diversified away by investing in both Maple Leaf 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 Maple Leaf and Aya Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maple Leaf Foods and Aya Gold Silver, you can compare the effects of market volatilities on Maple Leaf 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 Maple Leaf with a short position of Aya Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Leaf and Aya Gold.
Diversification Opportunities for Maple Leaf and Aya Gold
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Maple and Aya is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Maple Leaf Foods 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 Maple Leaf 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 Maple Leaf Foods 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 Maple Leaf i.e., Maple Leaf and Aya Gold go up and down completely randomly.
Pair Corralation between Maple Leaf and Aya Gold
Assuming the 90 days trading horizon Maple Leaf is expected to generate 7.82 times less return on investment than Aya Gold. But when comparing it to its historical volatility, Maple Leaf Foods is 1.85 times less risky than Aya Gold. It trades about 0.01 of its potential returns per unit of risk. Aya Gold Silver is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 823.00 in Aya Gold Silver on September 2, 2024 and sell it today you would earn a total of 495.00 from holding Aya Gold Silver or generate 60.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maple Leaf Foods vs. Aya Gold Silver
Performance |
| Timeline |
| Maple Leaf Foods |
| Aya Gold Silver |
Maple Leaf and Aya Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maple Leaf and Aya Gold
The main advantage of trading using opposite Maple Leaf and Aya Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple Leaf 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.| Maple Leaf vs. Saputo Inc | Maple Leaf vs. George Weston Limited | Maple Leaf vs. Empire Company Limited | Maple Leaf vs. Premium Brands Holdings |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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