Correlation Between Aya Gold and HUTCHISON TELECOMM

Can any of the company-specific risk be diversified away by investing in both Aya Gold and HUTCHISON TELECOMM 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 Aya Gold and HUTCHISON TELECOMM into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aya Gold Silver and HUTCHISON TELECOMM, you can compare the effects of market volatilities on Aya Gold and HUTCHISON TELECOMM 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 Aya Gold with a short position of HUTCHISON TELECOMM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aya Gold and HUTCHISON TELECOMM.

Diversification Opportunities for Aya Gold and HUTCHISON TELECOMM

0.04

Correlation Coefficient

Aya Gold  HUTCHISON TELECOMM

Significant diversification

The 3 months correlation between Aya and HUTCHISON is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Aya Gold Silver and HUTCHISON TELECOMM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUTCHISON TELECOMM and Aya Gold 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 Aya Gold Silver are associated (or correlated) with HUTCHISON TELECOMM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUTCHISON TELECOMM has no effect on the direction of Aya Gold i.e., Aya Gold and HUTCHISON TELECOMM go up and down completely randomly.

Pair Corralation between Aya Gold and HUTCHISON TELECOMM

Assuming the 90 days trading horizon Aya Gold Silver is expected to generate 1.02 times more return on investment than HUTCHISON TELECOMM. However, Aya Gold is 1.02 times more volatile than HUTCHISON TELECOMM. It trades about 0.09 of its potential returns per unit of risk. HUTCHISON TELECOMM is currently generating about -0.1 per unit of risk. If you would invest  729.00  in Aya Gold Silver on December 21, 2024 and sell it today you would earn a total of  136.00  from holding Aya Gold Silver or generate 18.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Aya Gold Silver  vs.  HUTCHISON TELECOMM

Aya Gold Silver

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Aya Gold Silver are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Aya Gold reported solid returns over the last few months and may actually be approaching a breakup point.

HUTCHISON TELECOMM

Risk-Adjusted Performance

Very Weak

Over the last 90 days HUTCHISON TELECOMM has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Aya Gold and HUTCHISON TELECOMM

The main advantage of trading using opposite Aya Gold and HUTCHISON TELECOMM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aya Gold position performs unexpectedly, HUTCHISON TELECOMM 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 HUTCHISON TELECOMM will offset losses from the drop in HUTCHISON TELECOMM's long position.

The idea behind Aya Gold Silver and HUTCHISON TELECOMM pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.