Correlation Between Aya Gold and Amphenol

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

Diversification Opportunities for Aya Gold and Amphenol

-0.11

Correlation Coefficient

Aya Gold  Amphenol

Good diversification

The 3 months correlation between Aya and Amphenol is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Aya Gold Silver and Amphenol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amphenol 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 Amphenol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amphenol has no effect on the direction of Aya Gold i.e., Aya Gold and Amphenol go up and down completely randomly.

Pair Corralation between Aya Gold and Amphenol

Assuming the 90 days trading horizon Aya Gold Silver is expected to generate 1.55 times more return on investment than Amphenol. However, Aya Gold is 1.55 times more volatile than Amphenol. It trades about 0.09 of its potential returns per unit of risk. Amphenol is currently generating about -0.08 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 Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Aya Gold Silver  vs.  Amphenol

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.

Amphenol

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Aya Gold and Amphenol

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

The idea behind Aya Gold Silver and Amphenol 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.