Correlation Between Aya Gold and WisdomTree Investments

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

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

Diversification Opportunities for Aya Gold and WisdomTree Investments

0.51

Correlation Coefficient

Aya Gold  WisdomTree Investments

Very weak diversification

The 3 months correlation between Aya and WisdomTree is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Aya Gold Silver and WisdomTree Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Investments and Aya Gold 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 Aya Gold Silver are associated (or correlated) with WisdomTree Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Investments has no effect on the direction of Aya Gold i.e., Aya Gold and WisdomTree Investments go up and down completely randomly.

Pair Corralation between Aya Gold and WisdomTree Investments

Assuming the 90 days trading horizon Aya Gold Silver is expected to generate 1.93 times more return on investment than WisdomTree Investments. However, Aya Gold is 1.93 times more volatile than WisdomTree Investments. It trades about 0.15 of its potential returns per unit of risk. WisdomTree Investments is currently generating about 0.28 per unit of risk. If you would invest  610.00  in Aya Gold Silver on April 25, 2025 and sell it today you would earn a total of  244.00  from holding Aya Gold Silver or generate 40.0% return on investment over 90 days.

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

Aya Gold Silver  vs.  WisdomTree Investments

Aya Gold Silver

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Aya Gold Silver are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain technical and fundamental indicators, Aya Gold reported solid returns over the last few months and may actually be approaching a breakup point.

WisdomTree Investments

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree Investments are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, WisdomTree Investments reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aya Gold and WisdomTree Investments

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

The idea behind Aya Gold Silver and WisdomTree Investments 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.