Correlation Between Aeon Metals and De Grey
Can any of the company-specific risk be diversified away by investing in both Aeon Metals and De Grey 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 Aeon Metals and De Grey into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aeon Metals and De Grey Mining, you can compare the effects of market volatilities on Aeon Metals and De Grey 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 Aeon Metals with a short position of De Grey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aeon Metals and De Grey.
Diversification Opportunities for Aeon Metals and De Grey
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aeon and DEG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aeon Metals and De Grey Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on De Grey Mining and Aeon 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 Aeon Metals are associated (or correlated) with De Grey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of De Grey Mining has no effect on the direction of Aeon Metals i.e., Aeon Metals and De Grey go up and down completely randomly.
Pair Corralation between Aeon Metals and De Grey
If you would invest 180.00 in De Grey Mining on October 23, 2024 and sell it today you would earn a total of 20.00 from holding De Grey Mining or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Aeon Metals vs. De Grey Mining
Performance |
| Timeline |
| Aeon Metals |
| De Grey Mining |
Aeon Metals and De Grey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aeon Metals and De Grey
The main advantage of trading using opposite Aeon Metals and De Grey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aeon Metals position performs unexpectedly, De Grey 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 De Grey will offset losses from the drop in De Grey's long position.| Aeon Metals vs. Northern Star Resources | Aeon Metals vs. Evolution Mining | Aeon Metals vs. Bluescope Steel | Aeon Metals vs. De Grey Mining |
| De Grey vs. Sequoia Financial Group | De Grey vs. Flagship Investments | De Grey vs. Navigator Global Investments | De Grey vs. Finexia Financial Group |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |