Correlation Between Antioquia Gold and Aurion Resources
Can any of the company-specific risk be diversified away by investing in both Antioquia Gold 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 Antioquia Gold and Aurion Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antioquia Gold and Aurion Resources, you can compare the effects of market volatilities on Antioquia Gold 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 Antioquia Gold with a short position of Aurion Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antioquia Gold and Aurion Resources.
Diversification Opportunities for Antioquia Gold and Aurion Resources
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Antioquia and Aurion is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Antioquia Gold and Aurion Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurion Resources and Antioquia 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 Antioquia Gold 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 Antioquia Gold i.e., Antioquia Gold and Aurion Resources go up and down completely randomly.
Pair Corralation between Antioquia Gold and Aurion Resources
Assuming the 90 days horizon Antioquia Gold is expected to generate 30.83 times more return on investment than Aurion Resources. However, Antioquia Gold is 30.83 times more volatile than Aurion Resources. It trades about 0.12 of its potential returns per unit of risk. Aurion Resources is currently generating about 0.03 per unit of risk. If you would invest 0.49 in Antioquia Gold on August 25, 2024 and sell it today you would earn a total of 1.51 from holding Antioquia Gold or generate 308.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Antioquia Gold vs. Aurion Resources
Performance |
| Timeline |
| Antioquia Gold |
| Aurion Resources |
Antioquia Gold and Aurion Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antioquia Gold and Aurion Resources
The main advantage of trading using opposite Antioquia Gold and Aurion Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antioquia Gold 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.| Antioquia Gold vs. Ascendant Resources | Antioquia Gold vs. Cantex Mine Development | Antioquia Gold vs. Amarc Resources | Antioquia Gold vs. Sterling Metals Corp |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |