Correlation Between Silver Hammer and Aya Gold

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

By analyzing existing cross correlation between Silver Hammer Mining and Aya Gold Silver, you can compare the effects of market volatilities on Silver Hammer and Aya 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 Silver Hammer with a short position of Aya Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silver Hammer and Aya Gold.

Diversification Opportunities for Silver Hammer and Aya Gold

0.43

Correlation Coefficient

Silver Hammer  Aya Gold

Very weak diversification

The 3 months correlation between Silver and Aya is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Silver Hammer Mining and Aya Gold Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aya Gold Silver and Silver Hammer 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 Silver Hammer Mining are associated (or correlated) with Aya Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aya Gold Silver has no effect on the direction of Silver Hammer i.e., Silver Hammer and Aya Gold go up and down completely randomly.

Pair Corralation between Silver Hammer and Aya Gold

Assuming the 90 days horizon Silver Hammer Mining is expected to generate 8.15 times more return on investment than Aya Gold. However, Silver Hammer is 8.15 times more volatile than Aya Gold Silver. It trades about 0.16 of its potential returns per unit of risk. Aya Gold Silver is currently generating about 0.08 per unit of risk. If you would invest  2.22  in Silver Hammer Mining on December 28, 2024 and sell it today you would earn a total of  3.68  from holding Silver Hammer Mining or generate 165.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.36%
Values	Daily Returns

Silver Hammer Mining  vs.  Aya Gold Silver

Silver Hammer Mining

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Silver Hammer Mining are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Silver Hammer reported solid returns over the last few months and may actually be approaching a breakup point.

Aya Gold Silver

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Aya Gold Silver are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Aya Gold reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Silver Hammer and Aya Gold

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

The idea behind Silver Hammer Mining and Aya Gold Silver 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.