Correlation Between Mako Mining and Aya Gold
Can any of the company-specific risk be diversified away by investing in both Mako 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 Mako 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 Mako Mining Corp and Aya Gold Silver, you can compare the effects of market volatilities on Mako 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 Mako Mining with a short position of Aya Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mako Mining and Aya Gold.
Diversification Opportunities for Mako Mining and Aya Gold
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mako and Aya is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Mako Mining Corp 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 Mako 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 Mako Mining Corp 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 Mako Mining i.e., Mako Mining and Aya Gold go up and down completely randomly.
Pair Corralation between Mako Mining and Aya Gold
Assuming the 90 days horizon Mako Mining Corp is expected to generate 0.27 times more return on investment than Aya Gold. However, Mako Mining Corp is 3.73 times less risky than Aya Gold. It trades about -0.03 of its potential returns per unit of risk. Aya Gold Silver is currently generating about -0.13 per unit of risk. If you would invest 303.00 in Mako Mining Corp on September 12, 2024 and sell it today you would lose (4.00) from holding Mako Mining Corp or give up 1.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mako Mining Corp vs. Aya Gold Silver
Performance |
| Timeline |
| Mako Mining Corp |
| Aya Gold Silver |
Mako Mining and Aya Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mako Mining and Aya Gold
The main advantage of trading using opposite Mako Mining and Aya Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mako 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.| Mako Mining vs. Thor Explorations | Mako Mining vs. K2 Gold | Mako Mining vs. Loncor Resources | Mako Mining vs. Sarama Resource |
| Aya Gold vs. Ressources Minieres Radisson | Aya Gold vs. Galantas Gold Corp | Aya Gold vs. Red Pine Exploration | Aya Gold vs. Kore Mining |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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