Correlation Between Aurion Resources and BTU Metals
Can any of the company-specific risk be diversified away by investing in both Aurion Resources and BTU Metals 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 BTU Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurion Resources and BTU Metals Corp, you can compare the effects of market volatilities on Aurion Resources and BTU Metals 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 BTU Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurion Resources and BTU Metals.
Diversification Opportunities for Aurion Resources and BTU Metals
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aurion and BTU is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Aurion Resources and BTU Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTU Metals 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 BTU Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTU Metals Corp has no effect on the direction of Aurion Resources i.e., Aurion Resources and BTU Metals go up and down completely randomly.
Pair Corralation between Aurion Resources and BTU Metals
Assuming the 90 days horizon Aurion Resources is expected to generate 0.73 times more return on investment than BTU Metals. However, Aurion Resources is 1.37 times less risky than BTU Metals. It trades about 0.09 of its potential returns per unit of risk. BTU Metals Corp is currently generating about 0.02 per unit of risk. If you would invest 42.00 in Aurion Resources on October 20, 2024 and sell it today you would earn a total of 2.00 from holding Aurion Resources or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Aurion Resources vs. BTU Metals Corp
Performance |
| Timeline |
| Aurion Resources |
| BTU Metals Corp |
Aurion Resources and BTU Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurion Resources and BTU Metals
The main advantage of trading using opposite Aurion Resources and BTU Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurion Resources position performs unexpectedly, BTU Metals 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 BTU Metals will offset losses from the drop in BTU Metals' long position.| Aurion Resources vs. Minnova Corp | Aurion Resources vs. Argo Gold | Aurion Resources vs. Advance Gold Corp | Aurion Resources vs. Blue Star Gold |
| BTU Metals vs. Avient Corp | BTU Metals vs. Ecovyst | BTU Metals vs. Sensient Technologies | BTU Metals vs. MYR Group |
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.
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