Correlation Between Aurelia Metals and OM Holdings
Can any of the company-specific risk be diversified away by investing in both Aurelia Metals and OM Holdings 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 OM Holdings 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 OM Holdings Limited, you can compare the effects of market volatilities on Aurelia Metals and OM Holdings 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 OM Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurelia Metals and OM Holdings.
Diversification Opportunities for Aurelia Metals and OM Holdings
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aurelia and OMHLF is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Aurelia Metals Limited and OM Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OM Holdings 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 OM Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OM Holdings Limited has no effect on the direction of Aurelia Metals i.e., Aurelia Metals and OM Holdings go up and down completely randomly.
Pair Corralation between Aurelia Metals and OM Holdings
If you would invest 23.00 in OM Holdings Limited on September 2, 2024 and sell it today you would earn a total of 0.00 from holding OM Holdings Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aurelia Metals Limited vs. OM Holdings Limited
Performance |
| Timeline |
| Aurelia Metals |
| OM Holdings Limited |
Aurelia Metals and OM Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurelia Metals and OM Holdings
The main advantage of trading using opposite Aurelia Metals and OM Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurelia Metals position performs unexpectedly, OM Holdings 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 OM Holdings will offset losses from the drop in OM Holdings' 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 |
| OM Holdings vs. Sherritt International | OM Holdings vs. AMG Advanced Metallurgical | OM Holdings vs. Metals X Limited | OM Holdings vs. Interra Copper Corp |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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