Correlation Between Aurion Resources and Sitka Gold
Can any of the company-specific risk be diversified away by investing in both Aurion Resources and Sitka 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 Sitka 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 Sitka Gold Corp, you can compare the effects of market volatilities on Aurion Resources and Sitka 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 Sitka Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurion Resources and Sitka Gold.
Diversification Opportunities for Aurion Resources and Sitka Gold
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aurion and Sitka is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Aurion Resources and Sitka Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sitka 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 Sitka Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sitka Gold Corp has no effect on the direction of Aurion Resources i.e., Aurion Resources and Sitka Gold go up and down completely randomly.
Pair Corralation between Aurion Resources and Sitka Gold
Assuming the 90 days horizon Aurion Resources is expected to under-perform the Sitka Gold. But the otc stock apears to be less risky and, when comparing its historical volatility, Aurion Resources is 1.58 times less risky than Sitka Gold. The otc stock trades about -0.19 of its potential returns per unit of risk. The Sitka Gold Corp is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 30.00 in Sitka Gold Corp on August 29, 2024 and sell it today you would lose (4.00) from holding Sitka Gold Corp or give up 13.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurion Resources vs. Sitka Gold Corp
Performance |
| Timeline |
| Aurion Resources |
| Sitka Gold Corp |
Aurion Resources and Sitka Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurion Resources and Sitka Gold
The main advantage of trading using opposite Aurion Resources and Sitka Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurion Resources position performs unexpectedly, Sitka 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 Sitka Gold will offset losses from the drop in Sitka 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 |
| Sitka Gold vs. Aurion Resources | Sitka Gold vs. Minera Alamos | Sitka Gold vs. Rio2 Limited | Sitka Gold vs. Roscan 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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