Correlation Between Advantage Solutions and Aris Mining
Can any of the company-specific risk be diversified away by investing in both Advantage Solutions and Aris 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 Advantage Solutions and Aris Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advantage Solutions and Aris Mining, you can compare the effects of market volatilities on Advantage Solutions and Aris 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 Advantage Solutions with a short position of Aris Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advantage Solutions and Aris Mining.
Diversification Opportunities for Advantage Solutions and Aris Mining
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advantage and Aris is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Advantage Solutions and Aris Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aris Mining and Advantage Solutions 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 Advantage Solutions are associated (or correlated) with Aris Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aris Mining has no effect on the direction of Advantage Solutions i.e., Advantage Solutions and Aris Mining go up and down completely randomly.
Pair Corralation between Advantage Solutions and Aris Mining
Assuming the 90 days horizon Advantage Solutions is expected to generate 20.26 times more return on investment than Aris Mining. However, Advantage Solutions is 20.26 times more volatile than Aris Mining. It trades about 0.1 of its potential returns per unit of risk. Aris Mining is currently generating about 0.24 per unit of risk. If you would invest 1.08 in Advantage Solutions on August 19, 2025 and sell it today you would lose (0.60) from holding Advantage Solutions or give up 55.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 72.31% |
| Values | Daily Returns |
Advantage Solutions vs. Aris Mining
Performance |
| Timeline |
| Advantage Solutions |
Risk-Adjusted Performance
Fair
Weak | Strong |
| Aris Mining |
Advantage Solutions and Aris Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advantage Solutions and Aris Mining
The main advantage of trading using opposite Advantage Solutions and Aris Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advantage Solutions position performs unexpectedly, Aris 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 Aris Mining will offset losses from the drop in Aris Mining's long position.| Advantage Solutions vs. Star Fashion Culture | Advantage Solutions vs. Ezagoo Limited | Advantage Solutions vs. Software Acquisition Group | Advantage Solutions vs. Cheer Holding |
| Aris Mining vs. West African Resources | Aris Mining vs. Montage Gold Corp | Aris Mining vs. Resolute Mining Limited | Aris Mining vs. Allied Gold |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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