Correlation Between Aya Gold and Reyna Silver

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

Diversification Opportunities for Aya Gold and Reyna Silver

0.26

Correlation Coefficient

Aya Gold  Reyna Silver

Modest diversification

The 3 months correlation between Aya and Reyna is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Aya Gold Silver and Reyna Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reyna Silver Corp 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 Reyna Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reyna Silver Corp has no effect on the direction of Aya Gold i.e., Aya Gold and Reyna Silver go up and down completely randomly.

Pair Corralation between Aya Gold and Reyna Silver

Assuming the 90 days horizon Aya Gold Silver is expected to generate 0.72 times more return on investment than Reyna Silver. However, Aya Gold Silver is 1.39 times less risky than Reyna Silver. It trades about -0.05 of its potential returns per unit of risk. Reyna Silver Corp is currently generating about -0.18 per unit of risk. If you would invest  936.00  in Aya Gold Silver on December 1, 2024 and sell it today you would lose (120.00) from holding Aya Gold Silver or give up 12.82% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Aya Gold Silver  vs.  Reyna Silver Corp

Aya Gold Silver

Risk-Adjusted Performance

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 latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Reyna Silver Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Reyna Silver Corp 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 Reyna Silver

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

The idea behind Aya Gold Silver and Reyna Silver Corp 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.