Correlation Between Aurion Resources and Angkor Resources
Can any of the company-specific risk be diversified away by investing in both Aurion Resources and Angkor 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 Aurion Resources and Angkor Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurion Resources and Angkor Resources Corp, you can compare the effects of market volatilities on Aurion Resources and Angkor 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 Aurion Resources with a short position of Angkor Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurion Resources and Angkor Resources.
Diversification Opportunities for Aurion Resources and Angkor Resources
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Aurion and Angkor is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Aurion Resources and Angkor Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angkor Resources 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 Angkor Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angkor Resources Corp has no effect on the direction of Aurion Resources i.e., Aurion Resources and Angkor Resources go up and down completely randomly.
Pair Corralation between Aurion Resources and Angkor Resources
Assuming the 90 days horizon Aurion Resources is expected to generate 0.46 times more return on investment than Angkor Resources. However, Aurion Resources is 2.16 times less risky than Angkor Resources. It trades about 0.19 of its potential returns per unit of risk. Angkor Resources Corp is currently generating about 0.03 per unit of risk. If you would invest 40.00 in Aurion Resources on September 14, 2024 and sell it today you would earn a total of 5.00 from holding Aurion Resources or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aurion Resources vs. Angkor Resources Corp
Performance |
| Timeline |
| Aurion Resources |
| Angkor Resources Corp |
Aurion Resources and Angkor Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurion Resources and Angkor Resources
The main advantage of trading using opposite Aurion Resources and Angkor Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurion Resources position performs unexpectedly, Angkor 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 Angkor Resources will offset losses from the drop in Angkor Resources' long position.| Aurion Resources vs. Advantage Solutions | Aurion Resources vs. Atlas Corp | Aurion Resources vs. PureCycle Technologies | Aurion Resources vs. WM Technology |
| Angkor Resources vs. Advantage Solutions | Angkor Resources vs. Atlas Corp | Angkor Resources vs. PureCycle Technologies | Angkor Resources vs. WM Technology |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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