Correlation Between Aurelia Metals and Harfang Exploration
Can any of the company-specific risk be diversified away by investing in both Aurelia Metals and Harfang Exploration 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 Harfang Exploration 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 Harfang Exploration, you can compare the effects of market volatilities on Aurelia Metals and Harfang Exploration 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 Harfang Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurelia Metals and Harfang Exploration.
Diversification Opportunities for Aurelia Metals and Harfang Exploration
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aurelia and Harfang is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Aurelia Metals Limited and Harfang Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harfang Exploration 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 Harfang Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harfang Exploration has no effect on the direction of Aurelia Metals i.e., Aurelia Metals and Harfang Exploration go up and down completely randomly.
Pair Corralation between Aurelia Metals and Harfang Exploration
If you would invest 4.54 in Harfang Exploration on September 3, 2024 and sell it today you would earn a total of 1.46 from holding Harfang Exploration or generate 32.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurelia Metals Limited vs. Harfang Exploration
Performance |
| Timeline |
| Aurelia Metals |
| Harfang Exploration |
Aurelia Metals and Harfang Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurelia Metals and Harfang Exploration
The main advantage of trading using opposite Aurelia Metals and Harfang Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurelia Metals position performs unexpectedly, Harfang Exploration 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 Harfang Exploration will offset losses from the drop in Harfang Exploration's long position.| Aurelia Metals vs. Qubec Nickel Corp | Aurelia Metals vs. IGO Limited | Aurelia Metals vs. Avarone Metals | Aurelia Metals vs. Adriatic Metals PLC |
| Harfang Exploration vs. Champion Bear Resources | Harfang Exploration vs. Edison Cobalt Corp | Harfang Exploration vs. Aurelia Metals Limited | Harfang Exploration vs. Fury Gold Mines |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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