Correlation Between Aurelia Metals and IGO
Can any of the company-specific risk be diversified away by investing in both Aurelia Metals and IGO 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 IGO 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 IGO Limited, you can compare the effects of market volatilities on Aurelia Metals and IGO 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 IGO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurelia Metals and IGO.
Diversification Opportunities for Aurelia Metals and IGO
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aurelia and IGO is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Aurelia Metals Limited and IGO Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IGO Limited 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 IGO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IGO Limited has no effect on the direction of Aurelia Metals i.e., Aurelia Metals and IGO go up and down completely randomly.
Pair Corralation between Aurelia Metals and IGO
If you would invest 15.00 in Aurelia Metals Limited on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Aurelia Metals Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Aurelia Metals Limited vs. IGO Limited
Performance |
| Timeline |
| Aurelia Metals |
| IGO Limited |
Aurelia Metals and IGO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurelia Metals and IGO
The main advantage of trading using opposite Aurelia Metals and IGO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurelia Metals position performs unexpectedly, IGO 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 IGO will offset losses from the drop in IGO'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 |
| IGO vs. Grid Metals Corp | IGO vs. First American Silver | IGO vs. Qubec Nickel Corp | IGO vs. Lithium Australia NL |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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