Correlation Between Santacruz Silv and Aya Gold
Can any of the company-specific risk be diversified away by investing in both Santacruz Silv 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 Santacruz Silv and Aya Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Santacruz Silv and Aya Gold Silver, you can compare the effects of market volatilities on Santacruz Silv 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 Santacruz Silv with a short position of Aya Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santacruz Silv and Aya Gold.
Diversification Opportunities for Santacruz Silv and Aya Gold
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Santacruz and Aya is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Santacruz Silv 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 Santacruz Silv 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 Santacruz Silv 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 Santacruz Silv i.e., Santacruz Silv and Aya Gold go up and down completely randomly.
Pair Corralation between Santacruz Silv and Aya Gold
Assuming the 90 days horizon Santacruz Silv is expected to under-perform the Aya Gold. In addition to that, Santacruz Silv is 1.09 times more volatile than Aya Gold Silver. It trades about -0.31 of its total potential returns per unit of risk. Aya Gold Silver is currently generating about -0.22 per unit of volatility. If you would invest 1,804 in Aya Gold Silver on August 29, 2024 and sell it today you would lose (475.00) from holding Aya Gold Silver or give up 26.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Santacruz Silv vs. Aya Gold Silver
Performance |
| Timeline |
| Santacruz Silv |
| Aya Gold Silver |
Santacruz Silv and Aya Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Santacruz Silv and Aya Gold
The main advantage of trading using opposite Santacruz Silv and Aya Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santacruz Silv 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.| Santacruz Silv vs. First Majestic Silver | Santacruz Silv vs. Ivanhoe Energy | Santacruz Silv vs. Orezone Gold Corp | Santacruz Silv vs. Faraday Copper 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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