Correlation Between Aurion Resources and Gold Bull
Can any of the company-specific risk be diversified away by investing in both Aurion Resources and Gold Bull 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 Gold Bull into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurion Resources and Gold Bull Resources, you can compare the effects of market volatilities on Aurion Resources and Gold Bull 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 Gold Bull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurion Resources and Gold Bull.
Diversification Opportunities for Aurion Resources and Gold Bull
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aurion and Gold is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Aurion Resources and Gold Bull Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Bull Resources 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 Gold Bull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Bull Resources has no effect on the direction of Aurion Resources i.e., Aurion Resources and Gold Bull go up and down completely randomly.
Pair Corralation between Aurion Resources and Gold Bull
Assuming the 90 days horizon Aurion Resources is expected to generate 1.12 times more return on investment than Gold Bull. However, Aurion Resources is 1.12 times more volatile than Gold Bull Resources. It trades about -0.19 of its potential returns per unit of risk. Gold Bull Resources is currently generating about -0.32 per unit of risk. If you would invest 48.00 in Aurion Resources on August 29, 2024 and sell it today you would lose (8.00) from holding Aurion Resources or give up 16.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurion Resources vs. Gold Bull Resources
Performance |
| Timeline |
| Aurion Resources |
| Gold Bull Resources |
Aurion Resources and Gold Bull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurion Resources and Gold Bull
The main advantage of trading using opposite Aurion Resources and Gold Bull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurion Resources position performs unexpectedly, Gold Bull 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 Gold Bull will offset losses from the drop in Gold Bull'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 |
| Gold Bull vs. Aurion Resources | Gold Bull vs. Liberty Gold Corp | Gold Bull vs. Orezone Gold Corp | Gold Bull vs. Fortuna Silver Mines |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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