Correlation Between Aurion Resources and Dynacor Gold
Can any of the company-specific risk be diversified away by investing in both Aurion Resources and Dynacor 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 Dynacor 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 Dynacor Gold Mines, you can compare the effects of market volatilities on Aurion Resources and Dynacor 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 Dynacor Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurion Resources and Dynacor Gold.
Diversification Opportunities for Aurion Resources and Dynacor Gold
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aurion and Dynacor is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Aurion Resources and Dynacor Gold Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dynacor Gold Mines 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 Dynacor Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dynacor Gold Mines has no effect on the direction of Aurion Resources i.e., Aurion Resources and Dynacor Gold go up and down completely randomly.
Pair Corralation between Aurion Resources and Dynacor Gold
Assuming the 90 days horizon Aurion Resources is expected to under-perform the Dynacor Gold. In addition to that, Aurion Resources is 1.65 times more volatile than Dynacor Gold Mines. It trades about -0.11 of its total potential returns per unit of risk. Dynacor Gold Mines is currently generating about 0.12 per unit of volatility. If you would invest 405.00 in Dynacor Gold Mines on September 1, 2024 and sell it today you would earn a total of 24.00 from holding Dynacor Gold Mines or generate 5.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurion Resources vs. Dynacor Gold Mines
Performance |
| Timeline |
| Aurion Resources |
| Dynacor Gold Mines |
Aurion Resources and Dynacor Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurion Resources and Dynacor Gold
The main advantage of trading using opposite Aurion Resources and Dynacor Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurion Resources position performs unexpectedly, Dynacor 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 Dynacor Gold will offset losses from the drop in Dynacor 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 |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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