Correlation Between Aya Gold and Patterson Companies

Can any of the company-specific risk be diversified away by investing in both Aya Gold and Patterson Companies 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 Patterson Companies 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 Patterson Companies, you can compare the effects of market volatilities on Aya Gold and Patterson Companies 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 Patterson Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aya Gold and Patterson Companies.

Diversification Opportunities for Aya Gold and Patterson Companies

0.0

Correlation Coefficient

Aya Gold  Patterson Companies

Pay attention - limited upside

The 3 months correlation between Aya and Patterson is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aya Gold Silver and Patterson Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patterson Companies 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 Patterson Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patterson Companies has no effect on the direction of Aya Gold i.e., Aya Gold and Patterson Companies go up and down completely randomly.

Pair Corralation between Aya Gold and Patterson Companies

If you would invest (100.00) in Patterson Companies on October 9, 2024 and sell it today you would earn a total of  100.00  from holding Patterson Companies or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Aya Gold Silver  vs.  Patterson Companies

Aya Gold Silver

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aya Gold Silver has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Patterson Companies

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Patterson Companies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Patterson Companies is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Aya Gold and Patterson Companies

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

The idea behind Aya Gold Silver and Patterson Companies 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.