Correlation Between Aurion Resources and GoGold Resources
Can any of the company-specific risk be diversified away by investing in both Aurion Resources and GoGold Resources 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 Aurion Resources and GoGold Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurion Resources and GoGold Resources, you can compare the effects of market volatilities on Aurion Resources and GoGold Resources 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 Aurion Resources with a short position of GoGold Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurion Resources and GoGold Resources.
Diversification Opportunities for Aurion Resources and GoGold Resources
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aurion and GoGold is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Aurion Resources and GoGold Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoGold Resources and Aurion 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 Aurion Resources are associated (or correlated) with GoGold Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GoGold Resources has no effect on the direction of Aurion Resources i.e., Aurion Resources and GoGold Resources go up and down completely randomly.
Pair Corralation between Aurion Resources and GoGold Resources
Given the investment horizon of 90 days Aurion Resources is expected to generate 0.93 times more return on investment than GoGold Resources. However, Aurion Resources is 1.08 times less risky than GoGold Resources. It trades about 0.02 of its potential returns per unit of risk. GoGold Resources is currently generating about 0.0 per unit of risk. If you would invest 56.00 in Aurion Resources on August 29, 2024 and sell it today you would earn a total of 3.00 from holding Aurion Resources or generate 5.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurion Resources vs. GoGold Resources
Performance |
| Timeline |
| Aurion Resources |
| GoGold Resources |
Aurion Resources and GoGold Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurion Resources and GoGold Resources
The main advantage of trading using opposite Aurion Resources and GoGold Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurion Resources position performs unexpectedly, GoGold Resources 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 GoGold Resources will offset losses from the drop in GoGold Resources' long position.| Aurion Resources vs. Galway Metals | Aurion Resources vs. Minaurum Gold | Aurion Resources vs. BonTerra Resources | Aurion Resources vs. Aurania Resources |
| GoGold Resources vs. Defiance Silver Corp | GoGold Resources vs. Liberty Gold Corp | GoGold Resources vs. Dolly Varden Silver | GoGold Resources vs. Minaurum Gold |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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