Correlation Between Aurelia Metals and Avenira
Can any of the company-specific risk be diversified away by investing in both Aurelia Metals and Avenira 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 Aurelia Metals and Avenira into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurelia Metals and Avenira, you can compare the effects of market volatilities on Aurelia Metals and Avenira 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 Aurelia Metals with a short position of Avenira. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurelia Metals and Avenira.
Diversification Opportunities for Aurelia Metals and Avenira
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aurelia and Avenira is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Aurelia Metals and Avenira in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avenira and Aurelia Metals 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 Aurelia Metals are associated (or correlated) with Avenira. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avenira has no effect on the direction of Aurelia Metals i.e., Aurelia Metals and Avenira go up and down completely randomly.
Pair Corralation between Aurelia Metals and Avenira
Assuming the 90 days trading horizon Aurelia Metals is expected to generate 0.62 times more return on investment than Avenira. However, Aurelia Metals is 1.6 times less risky than Avenira. It trades about 0.08 of its potential returns per unit of risk. Avenira is currently generating about -0.04 per unit of risk. If you would invest 18.00 in Aurelia Metals on November 3, 2024 and sell it today you would earn a total of 1.00 from holding Aurelia Metals or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurelia Metals vs. Avenira
Performance |
| Timeline |
| Aurelia Metals |
| Avenira |
Aurelia Metals and Avenira Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurelia Metals and Avenira
The main advantage of trading using opposite Aurelia Metals and Avenira positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurelia Metals position performs unexpectedly, Avenira 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 Avenira will offset losses from the drop in Avenira's long position.| Aurelia Metals vs. Charter Hall Retail | Aurelia Metals vs. Pearl Gull Iron | Aurelia Metals vs. Aeris Environmental | Aurelia Metals vs. Computershare |
| Avenira vs. Hotel Property Investments | Avenira vs. Kkr Credit Income | Avenira vs. MFF Capital Investments | Avenira vs. Medibank Private |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |