Correlation Between Aurelia Metals and Norra Metals

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Can any of the company-specific risk be diversified away by investing in both Aurelia Metals and Norra Metals 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 Norra Metals 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 Norra Metals Corp, you can compare the effects of market volatilities on Aurelia Metals and Norra Metals 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 Norra Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurelia Metals and Norra Metals.

Diversification Opportunities for Aurelia Metals and Norra Metals

AureliaNorraDiversified AwayAureliaNorraDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Aurelia and Norra is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aurelia Metals Limited and Norra Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Norra Metals Corp 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 Norra Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Norra Metals Corp has no effect on the direction of Aurelia Metals i.e., Aurelia Metals and Norra Metals go up and down completely randomly.

Pair Corralation between Aurelia Metals and Norra Metals

If you would invest  15.00  in Aurelia Metals Limited on November 24, 2024 and sell it today you would lose (2.00) from holding Aurelia Metals Limited or give up 13.33% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy92.19%
ValuesDaily Returns

Aurelia Metals Limited  vs.  Norra Metals Corp

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -50-40-30-20-10
JavaScript chart by amCharts 3.21.15AUMTF NRRMF
       Timeline  
Aurelia Metals 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Aurelia Metals Limited are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Aurelia Metals reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.070.080.090.10.110.120.130.140.15
Norra Metals Corp 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Norra Metals Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Norra Metals is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.010.0105

Aurelia Metals and Norra Metals Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-34.69-25.98-17.27-8.560.158.8617.7326.5935.45 0.00050.00100.00150.00200.00250.0030
JavaScript chart by amCharts 3.21.15AUMTF NRRMF
       Returns  

Pair Trading with Aurelia Metals and Norra Metals

The main advantage of trading using opposite Aurelia Metals and Norra Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurelia Metals position performs unexpectedly, Norra Metals 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 Norra Metals will offset losses from the drop in Norra Metals' long position.
The idea behind Aurelia Metals Limited and Norra Metals Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Stocks Directory module to find actively traded stocks across global markets.

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