Correlation Between Aris Gold and Mayfair Gold
Can any of the company-specific risk be diversified away by investing in both Aris Gold and Mayfair 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 Aris Gold and Mayfair Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aris Gold and Mayfair Gold Corp, you can compare the effects of market volatilities on Aris Gold and Mayfair 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 Aris Gold with a short position of Mayfair Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aris Gold and Mayfair Gold.
Diversification Opportunities for Aris Gold and Mayfair Gold
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aris and Mayfair is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Aris Gold and Mayfair Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mayfair Gold Corp and Aris 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 Aris Gold are associated (or correlated) with Mayfair Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mayfair Gold Corp has no effect on the direction of Aris Gold i.e., Aris Gold and Mayfair Gold go up and down completely randomly.
Pair Corralation between Aris Gold and Mayfair Gold
Assuming the 90 days horizon Aris Gold is expected to generate 1.61 times more return on investment than Mayfair Gold. However, Aris Gold is 1.61 times more volatile than Mayfair Gold Corp. It trades about 0.17 of its potential returns per unit of risk. Mayfair Gold Corp is currently generating about 0.12 per unit of risk. If you would invest 32.00 in Aris Gold on August 27, 2025 and sell it today you would earn a total of 22.00 from holding Aris Gold or generate 68.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aris Gold vs. Mayfair Gold Corp
Performance |
| Timeline |
| Aris Gold |
| Mayfair Gold Corp |
Aris Gold and Mayfair Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aris Gold and Mayfair Gold
The main advantage of trading using opposite Aris Gold and Mayfair Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aris Gold position performs unexpectedly, Mayfair 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 Mayfair Gold will offset losses from the drop in Mayfair Gold's long position.| Aris Gold vs. Leons Furniture Limited | Aris Gold vs. Nicola Mining | Aris Gold vs. Globex Mining Enterprises | Aris Gold vs. Marimaca Copper Corp |
| Mayfair Gold vs. North American Construction | Mayfair Gold vs. Rogers Communications | Mayfair Gold vs. Dream Office Real | Mayfair Gold vs. BLUERUSH Media Group |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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