Correlation Between Auryn Mining and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Auryn Mining and Dow Jones 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 Auryn Mining and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auryn Mining Corp and Dow Jones Industrial, you can compare the effects of market volatilities on Auryn Mining and Dow Jones 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 Auryn Mining with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auryn Mining and Dow Jones.
Diversification Opportunities for Auryn Mining and Dow Jones
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Auryn and Dow is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Auryn Mining Corp and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Auryn Mining 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 Auryn Mining Corp are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Auryn Mining i.e., Auryn Mining and Dow Jones go up and down completely randomly.
Pair Corralation between Auryn Mining and Dow Jones
Given the investment horizon of 90 days Auryn Mining Corp is expected to generate 14.98 times more return on investment than Dow Jones. However, Auryn Mining is 14.98 times more volatile than Dow Jones Industrial. It trades about 0.13 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.01 per unit of risk. If you would invest 48.00 in Auryn Mining Corp on October 26, 2024 and sell it today you would earn a total of 22.00 from holding Auryn Mining Corp or generate 45.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auryn Mining Corp vs. Dow Jones Industrial
Performance |
| Timeline |
Auryn Mining and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Auryn Mining Corp
Pair trading matchups for Auryn Mining
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Auryn Mining and Dow Jones
The main advantage of trading using opposite Auryn Mining and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auryn Mining position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Auryn Mining vs. Medinah Minerals | Auryn Mining vs. Group Ten Metals | Auryn Mining vs. American Creek Resources |
| Dow Jones vs. Asure Software | Dow Jones vs. Amkor Technology | Dow Jones vs. Radcom | Dow Jones vs. Senmiao Technology |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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