Correlation Between Aurion Resources and Advance Gold
Can any of the company-specific risk be diversified away by investing in both Aurion Resources and Advance 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 Aurion Resources and Advance Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurion Resources and Advance Gold Corp, you can compare the effects of market volatilities on Aurion Resources and Advance 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 Aurion Resources with a short position of Advance Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurion Resources and Advance Gold.
Diversification Opportunities for Aurion Resources and Advance Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aurion and Advance is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aurion Resources and Advance Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advance Gold Corp and Aurion Resources 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 Aurion Resources are associated (or correlated) with Advance Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advance Gold Corp has no effect on the direction of Aurion Resources i.e., Aurion Resources and Advance Gold go up and down completely randomly.
Pair Corralation between Aurion Resources and Advance Gold
Assuming the 90 days horizon Aurion Resources is expected to generate 2.01 times more return on investment than Advance Gold. However, Aurion Resources is 2.01 times more volatile than Advance Gold Corp. It trades about 0.03 of its potential returns per unit of risk. Advance Gold Corp is currently generating about -0.07 per unit of risk. If you would invest 36.00 in Aurion Resources on August 29, 2024 and sell it today you would earn a total of 6.00 from holding Aurion Resources or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurion Resources vs. Advance Gold Corp
Performance |
| Timeline |
| Aurion Resources |
| Advance Gold Corp |
Aurion Resources and Advance Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurion Resources and Advance Gold
The main advantage of trading using opposite Aurion Resources and Advance Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurion Resources position performs unexpectedly, Advance 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 Advance Gold will offset losses from the drop in Advance Gold's long position.| Aurion Resources vs. Minnova Corp | Aurion Resources vs. Argo Gold | Aurion Resources vs. Advance Gold Corp | Aurion Resources vs. Blue Star Gold |
| Advance Gold vs. Minnova Corp | Advance Gold vs. Blue Star Gold | Advance Gold vs. Angkor Resources Corp | Advance Gold vs. Advance United Holdings |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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