Correlation Between Auryn Mining and Medinah Minerals
Can any of the company-specific risk be diversified away by investing in both Auryn Mining and Medinah Minerals 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 Medinah Minerals 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 Medinah Minerals, you can compare the effects of market volatilities on Auryn Mining and Medinah Minerals 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 Medinah Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auryn Mining and Medinah Minerals.
Diversification Opportunities for Auryn Mining and Medinah Minerals
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Auryn and Medinah is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Auryn Mining Corp and Medinah Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medinah Minerals 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 Medinah Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medinah Minerals has no effect on the direction of Auryn Mining i.e., Auryn Mining and Medinah Minerals go up and down completely randomly.
Pair Corralation between Auryn Mining and Medinah Minerals
Given the investment horizon of 90 days Auryn Mining is expected to generate 18.35 times less return on investment than Medinah Minerals. But when comparing it to its historical volatility, Auryn Mining Corp is 8.86 times less risky than Medinah Minerals. It trades about 0.08 of its potential returns per unit of risk. Medinah Minerals is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 0.08 in Medinah Minerals on September 4, 2024 and sell it today you would lose (0.07) from holding Medinah Minerals or give up 87.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auryn Mining Corp vs. Medinah Minerals
Performance |
| Timeline |
| Auryn Mining Corp |
| Medinah Minerals |
Auryn Mining and Medinah Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auryn Mining and Medinah Minerals
The main advantage of trading using opposite Auryn Mining and Medinah Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auryn Mining position performs unexpectedly, Medinah Minerals 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 Medinah Minerals will offset losses from the drop in Medinah Minerals' long position.| Auryn Mining vs. Medinah Minerals | Auryn Mining vs. Group Ten Metals | Auryn Mining vs. American Creek Resources |
| Medinah Minerals vs. Advantage Solutions | Medinah Minerals vs. Atlas Corp | Medinah Minerals vs. PureCycle Technologies | Medinah Minerals vs. WM 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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