Correlation Between Sayona Mining and Aspire Mining

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

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

Diversification Opportunities for Sayona Mining and Aspire Mining

0.62

Correlation Coefficient

Sayona Mining  Aspire Mining

Poor diversification

The 3 months correlation between Sayona and Aspire is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Sayona Mining and Aspire Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aspire Mining and Sayona Mining 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 Sayona Mining are associated (or correlated) with Aspire Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aspire Mining has no effect on the direction of Sayona Mining i.e., Sayona Mining and Aspire Mining go up and down completely randomly.

Pair Corralation between Sayona Mining and Aspire Mining

Assuming the 90 days trading horizon Sayona Mining is expected to under-perform the Aspire Mining. But the stock apears to be less risky and, when comparing its historical volatility, Sayona Mining is 1.03 times less risky than Aspire Mining. The stock trades about -0.02 of its potential returns per unit of risk. The Aspire Mining is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  17.00  in Aspire Mining on October 10, 2024 and sell it today you would earn a total of  8.00  from holding Aspire Mining or generate 47.06% return on investment over 90 days.

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

Sayona Mining  vs.  Aspire Mining

Sayona Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sayona Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Aspire Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aspire Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's primary indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Sayona Mining and Aspire Mining

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

The idea behind Sayona Mining and Aspire Mining 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.

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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.