Correlation Between Aurania Resources and Minaurum Gold
Can any of the company-specific risk be diversified away by investing in both Aurania Resources and Minaurum Gold 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 Aurania Resources and Minaurum Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurania Resources and Minaurum Gold, you can compare the effects of market volatilities on Aurania Resources and Minaurum Gold 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 Aurania Resources with a short position of Minaurum Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurania Resources and Minaurum Gold.
Diversification Opportunities for Aurania Resources and Minaurum Gold
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aurania and Minaurum is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Aurania Resources and Minaurum Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minaurum Gold and Aurania Resources 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 Aurania Resources are associated (or correlated) with Minaurum Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minaurum Gold has no effect on the direction of Aurania Resources i.e., Aurania Resources and Minaurum Gold go up and down completely randomly.
Pair Corralation between Aurania Resources and Minaurum Gold
Assuming the 90 days horizon Aurania Resources is expected to under-perform the Minaurum Gold. But the stock apears to be less risky and, when comparing its historical volatility, Aurania Resources is 1.44 times less risky than Minaurum Gold. The stock trades about -0.35 of its potential returns per unit of risk. The Minaurum Gold is currently generating about -0.18 of returns per unit of risk over similar time horizon. If you would invest 28.00 in Minaurum Gold on August 29, 2024 and sell it today you would lose (7.00) from holding Minaurum Gold or give up 25.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurania Resources vs. Minaurum Gold
Performance |
| Timeline |
| Aurania Resources |
| Minaurum Gold |
Aurania Resources and Minaurum Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurania Resources and Minaurum Gold
The main advantage of trading using opposite Aurania Resources and Minaurum Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurania Resources position performs unexpectedly, Minaurum Gold 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 Minaurum Gold will offset losses from the drop in Minaurum Gold's long position.| Aurania Resources vs. Primaris Retail RE | Aurania Resources vs. Canso Select Opportunities | Aurania Resources vs. Champion Gaming Group | Aurania Resources vs. Perseus Mining |
| Minaurum Gold vs. Defiance Silver Corp | Minaurum Gold vs. Altiplano Metals | Minaurum Gold vs. Independence Gold Corp | Minaurum Gold vs. Galway Metals |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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