Correlation Between Aspire Mining and Aumake
Can any of the company-specific risk be diversified away by investing in both Aspire Mining and Aumake 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 Aspire Mining and Aumake into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aspire Mining and Aumake, you can compare the effects of market volatilities on Aspire Mining and Aumake 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 Aspire Mining with a short position of Aumake. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspire Mining and Aumake.
Diversification Opportunities for Aspire Mining and Aumake
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aspire and Aumake is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Aspire Mining and Aumake in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aumake and Aspire Mining 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 Aspire Mining are associated (or correlated) with Aumake. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aumake has no effect on the direction of Aspire Mining i.e., Aspire Mining and Aumake go up and down completely randomly.
Pair Corralation between Aspire Mining and Aumake
Assuming the 90 days trading horizon Aspire Mining is expected to generate 1.83 times less return on investment than Aumake. But when comparing it to its historical volatility, Aspire Mining is 2.03 times less risky than Aumake. It trades about 0.09 of its potential returns per unit of risk. Aumake is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 0.30 in Aumake on September 14, 2024 and sell it today you would earn a total of 0.20 from holding Aumake or generate 66.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aspire Mining vs. Aumake
Performance |
| Timeline |
| Aspire Mining |
| Aumake |
Aspire Mining and Aumake Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aspire Mining and Aumake
The main advantage of trading using opposite Aspire Mining and Aumake positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspire Mining position performs unexpectedly, Aumake 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 Aumake will offset losses from the drop in Aumake's long position.| Aspire Mining vs. Northern Star Resources | Aspire Mining vs. Evolution Mining | Aspire Mining vs. Bluescope Steel | Aspire Mining vs. Sandfire Resources NL |
| Aumake vs. Aneka Tambang Tbk | Aumake vs. Commonwealth Bank of | Aumake vs. Australia and New | Aumake vs. ANZ Group Holdings |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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