Correlation Between Boyd Group and Aris Gold

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

By analyzing existing cross correlation between Boyd Group Services and Aris Gold Corp, you can compare the effects of market volatilities on Boyd Group and Aris 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 Boyd Group with a short position of Aris Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Group and Aris Gold.

Diversification Opportunities for Boyd Group and Aris Gold

0.3

Correlation Coefficient

Boyd Group  Aris Gold

Weak diversification

The 3 months correlation between Boyd and Aris is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Group Services and Aris Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aris Gold Corp and Boyd Group 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 Boyd Group Services are associated (or correlated) with Aris Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aris Gold Corp has no effect on the direction of Boyd Group i.e., Boyd Group and Aris Gold go up and down completely randomly.

Pair Corralation between Boyd Group and Aris Gold

Assuming the 90 days trading horizon Boyd Group Services is expected to generate 0.48 times more return on investment than Aris Gold. However, Boyd Group Services is 2.09 times less risky than Aris Gold. It trades about 0.14 of its potential returns per unit of risk. Aris Gold Corp is currently generating about 0.02 per unit of risk. If you would invest  21,708  in Boyd Group Services on December 4, 2024 and sell it today you would earn a total of  2,457  from holding Boyd Group Services or generate 11.32% return on investment over 90 days.

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

Boyd Group Services  vs.  Aris Gold Corp

Boyd Group Services

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Boyd Group Services are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Boyd Group may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Aris Gold Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Aris Gold Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Aris Gold is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Boyd Group and Aris Gold

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

The idea behind Boyd Group Services and Aris Gold 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..