Correlation Between Aurion Resources and Flowery Gold
Can any of the company-specific risk be diversified away by investing in both Aurion Resources and Flowery 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 Flowery 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 Flowery Gold Mines, you can compare the effects of market volatilities on Aurion Resources and Flowery 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 Flowery Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurion Resources and Flowery Gold.
Diversification Opportunities for Aurion Resources and Flowery Gold
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aurion and Flowery is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Aurion Resources and Flowery Gold Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flowery 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 Flowery Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flowery Gold Mines has no effect on the direction of Aurion Resources i.e., Aurion Resources and Flowery Gold go up and down completely randomly.
Pair Corralation between Aurion Resources and Flowery Gold
Assuming the 90 days horizon Aurion Resources is expected to generate 1.62 times more return on investment than Flowery Gold. However, Aurion Resources is 1.62 times more volatile than Flowery Gold Mines. It trades about -0.01 of its potential returns per unit of risk. Flowery Gold Mines is currently generating about -0.07 per unit of risk. If you would invest 49.00 in Aurion Resources on August 30, 2024 and sell it today you would lose (8.00) from holding Aurion Resources or give up 16.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurion Resources vs. Flowery Gold Mines
Performance |
| Timeline |
| Aurion Resources |
| Flowery Gold Mines |
Aurion Resources and Flowery Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurion Resources and Flowery Gold
The main advantage of trading using opposite Aurion Resources and Flowery Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurion Resources position performs unexpectedly, Flowery 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 Flowery Gold will offset losses from the drop in Flowery 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 |
| Flowery Gold vs. Arrow Electronics | Flowery Gold vs. WiMi Hologram Cloud | Flowery Gold vs. Postal Realty Trust | Flowery Gold vs. Hudson Pacific Properties |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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