Correlation Between Tower Semiconductor and Aya Gold
Can any of the company-specific risk be diversified away by investing in both Tower Semiconductor 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 Tower Semiconductor and Aya Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tower Semiconductor and Aya Gold Silver, you can compare the effects of market volatilities on Tower Semiconductor 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 Tower Semiconductor with a short position of Aya Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tower Semiconductor and Aya Gold.
Diversification Opportunities for Tower Semiconductor and Aya Gold
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tower and Aya is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Tower Semiconductor 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 Tower Semiconductor 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 Tower Semiconductor 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 Tower Semiconductor i.e., Tower Semiconductor and Aya Gold go up and down completely randomly.
Pair Corralation between Tower Semiconductor and Aya Gold
Assuming the 90 days horizon Tower Semiconductor is expected to generate 0.69 times more return on investment than Aya Gold. However, Tower Semiconductor is 1.46 times less risky than Aya Gold. It trades about 0.21 of its potential returns per unit of risk. Aya Gold Silver is currently generating about -0.46 per unit of risk. If you would invest 4,653 in Tower Semiconductor on October 10, 2024 and sell it today you would earn a total of 326.00 from holding Tower Semiconductor or generate 7.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tower Semiconductor vs. Aya Gold Silver
Performance |
| Timeline |
| Tower Semiconductor |
| Aya Gold Silver |
Tower Semiconductor and Aya Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tower Semiconductor and Aya Gold
The main advantage of trading using opposite Tower Semiconductor and Aya Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tower Semiconductor 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.| Tower Semiconductor vs. TITANIUM TRANSPORTGROUP | Tower Semiconductor vs. Thai Beverage Public | Tower Semiconductor vs. USWE SPORTS AB | Tower Semiconductor vs. China Resources Beer |
| Aya Gold vs. ORMAT TECHNOLOGIES | Aya Gold vs. Sunny Optical Technology | Aya Gold vs. CARSALESCOM | Aya Gold vs. Kingdee International Software |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |