Correlation Between Aurelia Metals and Autosports
Can any of the company-specific risk be diversified away by investing in both Aurelia Metals and Autosports 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 Autosports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurelia Metals and Autosports Group, you can compare the effects of market volatilities on Aurelia Metals and Autosports 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 Autosports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurelia Metals and Autosports.
Diversification Opportunities for Aurelia Metals and Autosports
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aurelia and Autosports is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Aurelia Metals and Autosports Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autosports Group 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 Autosports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autosports Group has no effect on the direction of Aurelia Metals i.e., Aurelia Metals and Autosports go up and down completely randomly.
Pair Corralation between Aurelia Metals and Autosports
Assuming the 90 days trading horizon Aurelia Metals is expected to generate 4.4 times more return on investment than Autosports. However, Aurelia Metals is 4.4 times more volatile than Autosports Group. It trades about 0.08 of its potential returns per unit of risk. Autosports Group is currently generating about -0.15 per unit of risk. If you would invest 18.00 in Aurelia Metals on November 4, 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. Autosports Group
Performance |
| Timeline |
| Aurelia Metals |
| Autosports Group |
Aurelia Metals and Autosports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurelia Metals and Autosports
The main advantage of trading using opposite Aurelia Metals and Autosports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurelia Metals position performs unexpectedly, Autosports 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 Autosports will offset losses from the drop in Autosports' long position.| Aurelia Metals vs. Credit Clear | Aurelia Metals vs. Regal Funds Management | Aurelia Metals vs. Insignia Financial | Aurelia Metals vs. Black Rock Mining |
| Autosports vs. Centrex Metals | Autosports vs. FireFly Metals | Autosports vs. Cosmo Metals | Autosports vs. Champion Iron |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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