Correlation Between Aurelia Metals and Carnegie Clean
Can any of the company-specific risk be diversified away by investing in both Aurelia Metals and Carnegie Clean 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 Carnegie Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurelia Metals and Carnegie Clean Energy, you can compare the effects of market volatilities on Aurelia Metals and Carnegie Clean 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 Carnegie Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurelia Metals and Carnegie Clean.
Diversification Opportunities for Aurelia Metals and Carnegie Clean
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aurelia and Carnegie is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Aurelia Metals and Carnegie Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carnegie Clean Energy 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 Carnegie Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carnegie Clean Energy has no effect on the direction of Aurelia Metals i.e., Aurelia Metals and Carnegie Clean go up and down completely randomly.
Pair Corralation between Aurelia Metals and Carnegie Clean
Assuming the 90 days trading horizon Aurelia Metals is expected to generate 1.16 times more return on investment than Carnegie Clean. However, Aurelia Metals is 1.16 times more volatile than Carnegie Clean Energy. It trades about 0.18 of its potential returns per unit of risk. Carnegie Clean Energy is currently generating about -0.02 per unit of risk. If you would invest 18.00 in Aurelia Metals on November 28, 2024 and sell it today you would earn a total of 3.00 from holding Aurelia Metals or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aurelia Metals vs. Carnegie Clean Energy
Performance |
| Timeline |
| Aurelia Metals |
| Carnegie Clean Energy |
Aurelia Metals and Carnegie Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurelia Metals and Carnegie Clean
The main advantage of trading using opposite Aurelia Metals and Carnegie Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurelia Metals position performs unexpectedly, Carnegie Clean 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 Carnegie Clean will offset losses from the drop in Carnegie Clean's long position.| Aurelia Metals vs. Readytech Holdings | Aurelia Metals vs. Sports Entertainment Group | Aurelia Metals vs. ARN Media Limited | Aurelia Metals vs. Mach7 Technologies |
| Carnegie Clean vs. Carawine Resources Limited | Carnegie Clean vs. Oceania Healthcare | Carnegie Clean vs. Treasury Wine Estates | Carnegie Clean vs. Austco Healthcare |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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