Correlation Between Aurora Solar and Marimaca Copper
Can any of the company-specific risk be diversified away by investing in both Aurora Solar and Marimaca Copper 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 Aurora Solar and Marimaca Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurora Solar Technologies and Marimaca Copper Corp, you can compare the effects of market volatilities on Aurora Solar and Marimaca Copper 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 Aurora Solar with a short position of Marimaca Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Solar and Marimaca Copper.
Diversification Opportunities for Aurora Solar and Marimaca Copper
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aurora and Marimaca is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Solar Technologies and Marimaca Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marimaca Copper Corp and Aurora Solar 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 Aurora Solar Technologies are associated (or correlated) with Marimaca Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marimaca Copper Corp has no effect on the direction of Aurora Solar i.e., Aurora Solar and Marimaca Copper go up and down completely randomly.
Pair Corralation between Aurora Solar and Marimaca Copper
Assuming the 90 days horizon Aurora Solar Technologies is expected to under-perform the Marimaca Copper. In addition to that, Aurora Solar is 1.94 times more volatile than Marimaca Copper Corp. It trades about -0.07 of its total potential returns per unit of risk. Marimaca Copper Corp is currently generating about 0.17 per unit of volatility. If you would invest 425.00 in Marimaca Copper Corp on August 27, 2024 and sell it today you would earn a total of 59.00 from holding Marimaca Copper Corp or generate 13.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurora Solar Technologies vs. Marimaca Copper Corp
Performance |
| Timeline |
| Aurora Solar Technologies |
| Marimaca Copper Corp |
Aurora Solar and Marimaca Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Solar and Marimaca Copper
The main advantage of trading using opposite Aurora Solar and Marimaca Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Solar position performs unexpectedly, Marimaca Copper 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 Marimaca Copper will offset losses from the drop in Marimaca Copper's long position.| Aurora Solar vs. Solar Alliance Energy | Aurora Solar vs. Lite Access Technologies | Aurora Solar vs. Braille Energy Systems |
| Marimaca Copper vs. Ero Copper Corp | Marimaca Copper vs. Dore Copper Mining | Marimaca Copper vs. QC Copper and | Marimaca Copper vs. Arizona Sonoran Copper |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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