Correlation Between Aurelia Metals and Cosmo Metals
Can any of the company-specific risk be diversified away by investing in both Aurelia Metals and Cosmo Metals 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 Cosmo Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurelia Metals and Cosmo Metals, you can compare the effects of market volatilities on Aurelia Metals and Cosmo Metals 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 Cosmo Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurelia Metals and Cosmo Metals.
Diversification Opportunities for Aurelia Metals and Cosmo Metals
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aurelia and Cosmo is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Aurelia Metals and Cosmo Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosmo Metals 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 Cosmo Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosmo Metals has no effect on the direction of Aurelia Metals i.e., Aurelia Metals and Cosmo Metals go up and down completely randomly.
Pair Corralation between Aurelia Metals and Cosmo Metals
Assuming the 90 days trading horizon Aurelia Metals is expected to generate 0.9 times more return on investment than Cosmo Metals. However, Aurelia Metals is 1.12 times less risky than Cosmo Metals. It trades about 0.03 of its potential returns per unit of risk. Cosmo Metals is currently generating about -0.05 per unit of risk. If you would invest 14.00 in Aurelia Metals on October 11, 2024 and sell it today you would earn a total of 4.00 from holding Aurelia Metals or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurelia Metals vs. Cosmo Metals
Performance |
| Timeline |
| Aurelia Metals |
| Cosmo Metals |
Aurelia Metals and Cosmo Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurelia Metals and Cosmo Metals
The main advantage of trading using opposite Aurelia Metals and Cosmo Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurelia Metals position performs unexpectedly, Cosmo Metals 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 Cosmo Metals will offset losses from the drop in Cosmo Metals' long position.| Aurelia Metals vs. Richmond Vanadium Technology | Aurelia Metals vs. Sky Metals | Aurelia Metals vs. Queste Communications | Aurelia Metals vs. Ras Technology Holdings |
| Cosmo Metals vs. Metro Mining | Cosmo Metals vs. Auswide Bank | Cosmo Metals vs. Sequoia Financial Group | Cosmo Metals vs. Aspire Mining |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |