Correlation Between Gatos Silver and Aozora Bank
Can any of the company-specific risk be diversified away by investing in both Gatos Silver and Aozora Bank 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 Gatos Silver and Aozora Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gatos Silver and Aozora Bank, you can compare the effects of market volatilities on Gatos Silver and Aozora Bank 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 Gatos Silver with a short position of Aozora Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gatos Silver and Aozora Bank.
Diversification Opportunities for Gatos Silver and Aozora Bank
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gatos and Aozora is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Gatos Silver and Aozora Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aozora Bank and Gatos Silver 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 Gatos Silver are associated (or correlated) with Aozora Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aozora Bank has no effect on the direction of Gatos Silver i.e., Gatos Silver and Aozora Bank go up and down completely randomly.
Pair Corralation between Gatos Silver and Aozora Bank
If you would invest 962.00 in Gatos Silver on October 12, 2024 and sell it today you would earn a total of 534.00 from holding Gatos Silver or generate 55.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 0.53% |
Values | Daily Returns |
Gatos Silver vs. Aozora Bank
Performance |
Timeline |
Gatos Silver |
Aozora Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Gatos Silver and Aozora Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gatos Silver and Aozora Bank
The main advantage of trading using opposite Gatos Silver and Aozora Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gatos Silver position performs unexpectedly, Aozora Bank 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 Aozora Bank will offset losses from the drop in Aozora Bank's long position.Gatos Silver vs. Endeavour Silver Corp | Gatos Silver vs. Metalla Royalty Streaming | Gatos Silver vs. New Pacific Metals | Gatos Silver vs. Hecla Mining |
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Check out your portfolio center.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.
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