Correlation Between Arctic Gold and Auriant Mining
Can any of the company-specific risk be diversified away by investing in both Arctic Gold and Auriant Mining 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 Arctic Gold and Auriant Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arctic Gold Publ and Auriant Mining AB, you can compare the effects of market volatilities on Arctic Gold and Auriant Mining 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 Arctic Gold with a short position of Auriant Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arctic Gold and Auriant Mining.
Diversification Opportunities for Arctic Gold and Auriant Mining
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Arctic and Auriant is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Arctic Gold Publ and Auriant Mining AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auriant Mining AB and Arctic Gold 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 Arctic Gold Publ are associated (or correlated) with Auriant Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auriant Mining AB has no effect on the direction of Arctic Gold i.e., Arctic Gold and Auriant Mining go up and down completely randomly.
Pair Corralation between Arctic Gold and Auriant Mining
Assuming the 90 days trading horizon Arctic Gold Publ is expected to under-perform the Auriant Mining. In addition to that, Arctic Gold is 2.01 times more volatile than Auriant Mining AB. It trades about -0.02 of its total potential returns per unit of risk. Auriant Mining AB is currently generating about 0.12 per unit of volatility. If you would invest 93.00 in Auriant Mining AB on September 4, 2024 and sell it today you would earn a total of 7.00 from holding Auriant Mining AB or generate 7.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Arctic Gold Publ vs. Auriant Mining AB
Performance |
| Timeline |
| Arctic Gold Publ |
| Auriant Mining AB |
Arctic Gold and Auriant Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arctic Gold and Auriant Mining
The main advantage of trading using opposite Arctic Gold and Auriant Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arctic Gold position performs unexpectedly, Auriant Mining 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 Auriant Mining will offset losses from the drop in Auriant Mining's long position.| Arctic Gold vs. Auriant Mining AB | Arctic Gold vs. aXichem AB | Arctic Gold vs. Clean Motion AB | Arctic Gold vs. KABE Group AB |
| Auriant Mining vs. Arctic Gold Publ | Auriant Mining vs. aXichem AB | Auriant Mining vs. Avensia publ AB | Auriant Mining vs. KABE Group AB |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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