Correlation Between Aurelia Metals and Santana Minerals
Can any of the company-specific risk be diversified away by investing in both Aurelia Metals and Santana Minerals 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 Santana Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurelia Metals and Santana Minerals, you can compare the effects of market volatilities on Aurelia Metals and Santana Minerals 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 Santana Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurelia Metals and Santana Minerals.
Diversification Opportunities for Aurelia Metals and Santana Minerals
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aurelia and Santana is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Aurelia Metals and Santana Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Santana Minerals 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 Santana Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Santana Minerals has no effect on the direction of Aurelia Metals i.e., Aurelia Metals and Santana Minerals go up and down completely randomly.
Pair Corralation between Aurelia Metals and Santana Minerals
Assuming the 90 days trading horizon Aurelia Metals is expected to generate 1.74 times less return on investment than Santana Minerals. But when comparing it to its historical volatility, Aurelia Metals is 1.08 times less risky than Santana Minerals. It trades about 0.04 of its potential returns per unit of risk. Santana Minerals is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 40.00 in Santana Minerals on November 7, 2024 and sell it today you would earn a total of 12.00 from holding Santana Minerals or generate 30.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Aurelia Metals vs. Santana Minerals
Performance |
| Timeline |
| Aurelia Metals |
| Santana Minerals |
Aurelia Metals and Santana Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurelia Metals and Santana Minerals
The main advantage of trading using opposite Aurelia Metals and Santana Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurelia Metals position performs unexpectedly, Santana Minerals 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 Santana Minerals will offset losses from the drop in Santana Minerals' long position.| Aurelia Metals vs. Northern Star Resources | Aurelia Metals vs. Evolution Mining | Aurelia Metals vs. Bluescope Steel | Aurelia Metals vs. De Grey Mining |
| Santana Minerals vs. Beam Communications Holdings | Santana Minerals vs. Lykos Metals | Santana Minerals vs. Truscott Mining Corp | Santana Minerals vs. 29Metals |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |