Correlation Between Aurion Resources and Montage Gold
Can any of the company-specific risk be diversified away by investing in both Aurion Resources and Montage 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 Montage 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 Montage Gold Corp, you can compare the effects of market volatilities on Aurion Resources and Montage 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 Montage Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurion Resources and Montage Gold.
Diversification Opportunities for Aurion Resources and Montage Gold
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aurion and Montage is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Aurion Resources and Montage Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Montage Gold 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 Montage Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Montage Gold Corp has no effect on the direction of Aurion Resources i.e., Aurion Resources and Montage Gold go up and down completely randomly.
Pair Corralation between Aurion Resources and Montage Gold
Assuming the 90 days horizon Aurion Resources is expected to generate 3.2 times less return on investment than Montage Gold. In addition to that, Aurion Resources is 1.18 times more volatile than Montage Gold Corp. It trades about 0.02 of its total potential returns per unit of risk. Montage Gold Corp is currently generating about 0.08 per unit of volatility. If you would invest 51.00 in Montage Gold Corp on September 3, 2024 and sell it today you would earn a total of 110.00 from holding Montage Gold Corp or generate 215.69% 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. Montage Gold Corp
Performance |
| Timeline |
| Aurion Resources |
| Montage Gold Corp |
Aurion Resources and Montage Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurion Resources and Montage Gold
The main advantage of trading using opposite Aurion Resources and Montage Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurion Resources position performs unexpectedly, Montage 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 Montage Gold will offset losses from the drop in Montage 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 |
| Montage Gold vs. Leviathan Gold | Montage Gold vs. KORE Mining | Montage Gold vs. Cabral Gold | Montage Gold vs. Independence Gold Corp |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Stocks Directory Find actively traded stocks across global markets |