Correlation Between Stamper Oil and Aya Gold
Can any of the company-specific risk be diversified away by investing in both Stamper Oil 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 Stamper Oil and Aya Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stamper Oil Gas and Aya Gold Silver, you can compare the effects of market volatilities on Stamper Oil 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 Stamper Oil with a short position of Aya Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stamper Oil and Aya Gold.
Diversification Opportunities for Stamper Oil and Aya Gold
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Stamper and Aya is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Stamper Oil Gas 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 Stamper Oil 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 Stamper Oil Gas 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 Stamper Oil i.e., Stamper Oil and Aya Gold go up and down completely randomly.
Pair Corralation between Stamper Oil and Aya Gold
Assuming the 90 days trading horizon Stamper Oil Gas is expected to generate 6.17 times more return on investment than Aya Gold. However, Stamper Oil is 6.17 times more volatile than Aya Gold Silver. It trades about 0.16 of its potential returns per unit of risk. Aya Gold Silver is currently generating about -0.19 per unit of risk. If you would invest 2.00 in Stamper Oil Gas on September 5, 2024 and sell it today you would earn a total of 0.50 from holding Stamper Oil Gas or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Stamper Oil Gas vs. Aya Gold Silver
Performance |
| Timeline |
| Stamper Oil Gas |
| Aya Gold Silver |
Stamper Oil and Aya Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stamper Oil and Aya Gold
The main advantage of trading using opposite Stamper Oil and Aya Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stamper Oil 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.| Stamper Oil vs. Aya Gold Silver | Stamper Oil vs. Bip Investment Corp | Stamper Oil vs. Summa Silver Corp | Stamper Oil vs. Faction Investment Group |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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