Correlation Between Aya Gold and Conavi Medical

Can any of the company-specific risk be diversified away by investing in both Aya Gold and Conavi Medical 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 Conavi Medical 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 Conavi Medical Corp, you can compare the effects of market volatilities on Aya Gold and Conavi Medical 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 Conavi Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aya Gold and Conavi Medical.

Diversification Opportunities for Aya Gold and Conavi Medical

0.23

Correlation Coefficient

Aya Gold  Conavi Medical

Modest diversification

The 3 months correlation between Aya and Conavi is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Aya Gold Silver and Conavi Medical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conavi Medical Corp 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 Conavi Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conavi Medical Corp has no effect on the direction of Aya Gold i.e., Aya Gold and Conavi Medical go up and down completely randomly.

Pair Corralation between Aya Gold and Conavi Medical

Assuming the 90 days trading horizon Aya Gold is expected to generate 1.2 times less return on investment than Conavi Medical. But when comparing it to its historical volatility, Aya Gold Silver is 1.06 times less risky than Conavi Medical. It trades about 0.11 of its potential returns per unit of risk. Conavi Medical Corp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  38.00  in Conavi Medical Corp on May 7, 2025 and sell it today you would earn a total of  11.00  from holding Conavi Medical Corp or generate 28.95% return on investment over 90 days.

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

Aya Gold Silver  vs.  Conavi Medical Corp

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 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Aya Gold displayed solid returns over the last few months and may actually be approaching a breakup point.

Conavi Medical Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Conavi Medical Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Conavi Medical showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aya Gold and Conavi Medical

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

The idea behind Aya Gold Silver and Conavi Medical Corp 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.