Correlation Between Aurion Resources and Artemis Gold
Can any of the company-specific risk be diversified away by investing in both Aurion Resources and Artemis 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 Artemis 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 Artemis Gold, you can compare the effects of market volatilities on Aurion Resources and Artemis 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 Artemis Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurion Resources and Artemis Gold.
Diversification Opportunities for Aurion Resources and Artemis Gold
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aurion and Artemis is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Aurion Resources and Artemis Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artemis Gold 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 Artemis Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artemis Gold has no effect on the direction of Aurion Resources i.e., Aurion Resources and Artemis Gold go up and down completely randomly.
Pair Corralation between Aurion Resources and Artemis Gold
Assuming the 90 days horizon Aurion Resources is expected to under-perform the Artemis Gold. But the otc stock apears to be less risky and, when comparing its historical volatility, Aurion Resources is 1.08 times less risky than Artemis Gold. The otc stock trades about -0.14 of its potential returns per unit of risk. The Artemis Gold is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 1,065 in Artemis Gold on August 29, 2024 and sell it today you would lose (75.00) from holding Artemis Gold or give up 7.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Aurion Resources vs. Artemis Gold
Performance |
| Timeline |
| Aurion Resources |
| Artemis Gold |
Aurion Resources and Artemis Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurion Resources and Artemis Gold
The main advantage of trading using opposite Aurion Resources and Artemis Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurion Resources position performs unexpectedly, Artemis 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 Artemis Gold will offset losses from the drop in Artemis 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 |
| Artemis Gold vs. Precipitate Gold Corp | Artemis Gold vs. Orogen Royalties | Artemis Gold vs. Angkor Resources Corp | Artemis Gold vs. Argo 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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