Correlation Between Advantage Solutions and Aurion Resources
Can any of the company-specific risk be diversified away by investing in both Advantage Solutions and Aurion Resources 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 Aurion Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advantage Solutions and Aurion Resources, you can compare the effects of market volatilities on Advantage Solutions and Aurion Resources 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 Aurion Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advantage Solutions and Aurion Resources.
Diversification Opportunities for Advantage Solutions and Aurion Resources
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Advantage and Aurion is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Advantage Solutions and Aurion Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurion Resources 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 Aurion Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurion Resources has no effect on the direction of Advantage Solutions i.e., Advantage Solutions and Aurion Resources go up and down completely randomly.
Pair Corralation between Advantage Solutions and Aurion Resources
Assuming the 90 days horizon Advantage Solutions is expected to under-perform the Aurion Resources. In addition to that, Advantage Solutions is 3.21 times more volatile than Aurion Resources. It trades about -0.13 of its total potential returns per unit of risk. Aurion Resources is currently generating about 0.17 per unit of volatility. If you would invest 42.00 in Aurion Resources on September 13, 2024 and sell it today you would earn a total of 5.00 from holding Aurion Resources or generate 11.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Advantage Solutions vs. Aurion Resources
Performance |
| Timeline |
| Advantage Solutions |
| Aurion Resources |
Advantage Solutions and Aurion Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advantage Solutions and Aurion Resources
The main advantage of trading using opposite Advantage Solutions and Aurion Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advantage Solutions position performs unexpectedly, Aurion Resources 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 Aurion Resources will offset losses from the drop in Aurion Resources' long position.| Advantage Solutions vs. CannBioRx Life Sciences | Advantage Solutions vs. GCM Grosvenor | Advantage Solutions vs. CuriosityStream | Advantage Solutions vs. Aquagold International |
| Aurion Resources vs. Minnova Corp | Aurion Resources vs. Argo Gold | Aurion Resources vs. Advance Gold Corp | Aurion Resources vs. Blue Star 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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