Correlation Between Aurelia Metals and Saint Jean
Can any of the company-specific risk be diversified away by investing in both Aurelia Metals and Saint Jean 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 Saint Jean 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 Saint Jean Carbon, you can compare the effects of market volatilities on Aurelia Metals and Saint Jean 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 Saint Jean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurelia Metals and Saint Jean.
Diversification Opportunities for Aurelia Metals and Saint Jean
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aurelia and Saint is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Aurelia Metals Limited and Saint Jean Carbon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saint Jean Carbon 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 Saint Jean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saint Jean Carbon has no effect on the direction of Aurelia Metals i.e., Aurelia Metals and Saint Jean go up and down completely randomly.
Pair Corralation between Aurelia Metals and Saint Jean
If you would invest 1.55 in Saint Jean Carbon on September 1, 2024 and sell it today you would earn a total of 0.24 from holding Saint Jean Carbon or generate 15.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurelia Metals Limited vs. Saint Jean Carbon
Performance |
| Timeline |
| Aurelia Metals |
| Saint Jean Carbon |
Aurelia Metals and Saint Jean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurelia Metals and Saint Jean
The main advantage of trading using opposite Aurelia Metals and Saint Jean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurelia Metals position performs unexpectedly, Saint Jean 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 Saint Jean will offset losses from the drop in Saint Jean'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 |
| Saint Jean vs. ATT Inc | Saint Jean vs. Merck Company | Saint Jean vs. Walt Disney | Saint Jean vs. Caterpillar |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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