Correlation Between Aurion Resources and Northern Superior
Can any of the company-specific risk be diversified away by investing in both Aurion Resources and Northern Superior 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 Northern Superior into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurion Resources and Northern Superior Resources, you can compare the effects of market volatilities on Aurion Resources and Northern Superior 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 Northern Superior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurion Resources and Northern Superior.
Diversification Opportunities for Aurion Resources and Northern Superior
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aurion and Northern is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Aurion Resources and Northern Superior Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Superior 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 Northern Superior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Superior has no effect on the direction of Aurion Resources i.e., Aurion Resources and Northern Superior go up and down completely randomly.
Pair Corralation between Aurion Resources and Northern Superior
Assuming the 90 days horizon Aurion Resources is expected to under-perform the Northern Superior. In addition to that, Aurion Resources is 1.01 times more volatile than Northern Superior Resources. It trades about -0.23 of its total potential returns per unit of risk. Northern Superior Resources is currently generating about 0.05 per unit of volatility. If you would invest 35.00 in Northern Superior Resources on August 25, 2024 and sell it today you would earn a total of 1.00 from holding Northern Superior Resources or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Aurion Resources vs. Northern Superior Resources
Performance |
| Timeline |
| Aurion Resources |
| Northern Superior |
Aurion Resources and Northern Superior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurion Resources and Northern Superior
The main advantage of trading using opposite Aurion Resources and Northern Superior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurion Resources position performs unexpectedly, Northern Superior 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 Northern Superior will offset losses from the drop in Northern Superior'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 |
| Northern Superior vs. Aurion Resources | Northern Superior vs. Liberty Gold Corp | Northern Superior vs. Rio2 Limited | Northern Superior vs. Orezone 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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