Correlation Between Aurelia Metals and Granite Creek
Can any of the company-specific risk be diversified away by investing in both Aurelia Metals and Granite Creek 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 Aurelia Metals and Granite Creek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurelia Metals Limited and Granite Creek Copper, you can compare the effects of market volatilities on Aurelia Metals and Granite Creek 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 Aurelia Metals with a short position of Granite Creek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurelia Metals and Granite Creek.
Diversification Opportunities for Aurelia Metals and Granite Creek
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aurelia and Granite is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Aurelia Metals Limited and Granite Creek Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Granite Creek Copper and Aurelia Metals 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 Aurelia Metals Limited are associated (or correlated) with Granite Creek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Granite Creek Copper has no effect on the direction of Aurelia Metals i.e., Aurelia Metals and Granite Creek go up and down completely randomly.
Pair Corralation between Aurelia Metals and Granite Creek
Assuming the 90 days horizon Aurelia Metals Limited is expected to generate 0.73 times more return on investment than Granite Creek. However, Aurelia Metals Limited is 1.37 times less risky than Granite Creek. It trades about -0.21 of its potential returns per unit of risk. Granite Creek Copper is currently generating about -0.35 per unit of risk. If you would invest 18.00 in Aurelia Metals Limited on August 25, 2024 and sell it today you would lose (3.00) from holding Aurelia Metals Limited or give up 16.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurelia Metals Limited vs. Granite Creek Copper
Performance |
| Timeline |
| Aurelia Metals |
| Granite Creek Copper |
Aurelia Metals and Granite Creek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurelia Metals and Granite Creek
The main advantage of trading using opposite Aurelia Metals and Granite Creek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurelia Metals position performs unexpectedly, Granite Creek 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 Granite Creek will offset losses from the drop in Granite Creek's long position.| Aurelia Metals vs. Champion Bear Resources | Aurelia Metals vs. Baroyeca Gold Silver | Aurelia Metals vs. Centaurus Metals Limited | Aurelia Metals vs. Edison Cobalt Corp |
| Granite Creek vs. Norra Metals Corp | Granite Creek vs. ZincX Resources Corp | Granite Creek vs. Nuinsco Resources Limited | Granite Creek vs. South Star Battery |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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