Correlation Between KION Group and Aya Gold

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

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

Diversification Opportunities for KION Group and Aya Gold

0.81

Correlation Coefficient

KION Group  Aya Gold

Very poor diversification

The 3 months correlation between KION and Aya is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding KION Group AG 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 KION 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 KION Group AG 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 KION Group i.e., KION Group and Aya Gold go up and down completely randomly.

Pair Corralation between KION Group and Aya Gold

Assuming the 90 days horizon KION Group AG is expected to generate 0.57 times more return on investment than Aya Gold. However, KION Group AG is 1.76 times less risky than Aya Gold. It trades about -0.4 of its potential returns per unit of risk. Aya Gold Silver is currently generating about -0.45 per unit of risk. If you would invest  3,574  in KION Group AG on October 10, 2024 and sell it today you would lose (365.00) from holding KION Group AG or give up 10.21% of portfolio value over 90 days.

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

KION Group AG  vs.  Aya Gold Silver

KION Group AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KION Group AG 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.

Aya Gold Silver

Risk-Adjusted Performance

0 of 100

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 fragile performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with KION Group and Aya Gold

The main advantage of trading using opposite KION Group and Aya Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KION Group 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 KION Group AG 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.