Correlation Between Aurion Resources and US Gold
Can any of the company-specific risk be diversified away by investing in both Aurion Resources and US 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 US 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 US Gold Corp, you can compare the effects of market volatilities on Aurion Resources and US 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 US Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurion Resources and US Gold.
Diversification Opportunities for Aurion Resources and US Gold
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aurion and USAU is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Aurion Resources and US Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US 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 US Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Gold Corp has no effect on the direction of Aurion Resources i.e., Aurion Resources and US Gold go up and down completely randomly.
Pair Corralation between Aurion Resources and US Gold
Assuming the 90 days horizon Aurion Resources is expected to under-perform the US Gold. But the otc stock apears to be less risky and, when comparing its historical volatility, Aurion Resources is 1.32 times less risky than US Gold. The otc stock trades about -0.14 of its potential returns per unit of risk. The US Gold Corp is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 608.00 in US Gold Corp on August 29, 2024 and sell it today you would earn a total of 226.00 from holding US Gold Corp or generate 37.17% 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. US Gold Corp
Performance |
| Timeline |
| Aurion Resources |
| US Gold Corp |
Aurion Resources and US Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurion Resources and US Gold
The main advantage of trading using opposite Aurion Resources and US Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurion Resources position performs unexpectedly, US 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 US Gold will offset losses from the drop in US 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 |
| US Gold vs. Labrador Gold Corp | US Gold vs. Aurion Resources | US Gold vs. Puma Exploration | US Gold vs. Golden Star Resource |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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