Correlation Between Aston Bay and Ur Energy
Can any of the company-specific risk be diversified away by investing in both Aston Bay and Ur Energy 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 Aston Bay and Ur Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aston Bay Holdings and Ur Energy, you can compare the effects of market volatilities on Aston Bay and Ur Energy 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 Aston Bay with a short position of Ur Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aston Bay and Ur Energy.
Diversification Opportunities for Aston Bay and Ur Energy
Pay attention - limited upside
The 3 months correlation between Aston and URE is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Aston Bay Holdings and Ur Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ur Energy and Aston Bay 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 Aston Bay Holdings are associated (or correlated) with Ur Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ur Energy has no effect on the direction of Aston Bay i.e., Aston Bay and Ur Energy go up and down completely randomly.
Pair Corralation between Aston Bay and Ur Energy
Assuming the 90 days horizon Aston Bay Holdings is expected to generate 4.4 times more return on investment than Ur Energy. However, Aston Bay is 4.4 times more volatile than Ur Energy. It trades about 0.06 of its potential returns per unit of risk. Ur Energy is currently generating about 0.04 per unit of risk. If you would invest 4.00 in Aston Bay Holdings on August 31, 2024 and sell it today you would earn a total of 2.50 from holding Aston Bay Holdings or generate 62.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Aston Bay Holdings vs. Ur Energy
Performance |
| Timeline |
| Aston Bay Holdings |
| Ur Energy |
Aston Bay and Ur Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aston Bay and Ur Energy
The main advantage of trading using opposite Aston Bay and Ur Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aston Bay position performs unexpectedly, Ur Energy 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 Ur Energy will offset losses from the drop in Ur Energy's long position.| Aston Bay vs. Solar Alliance Energy | Aston Bay vs. Global X Active | Aston Bay vs. Financial 15 Split | Aston Bay vs. Rubicon Organics |
| Ur Energy vs. Denison Mines Corp | Ur Energy vs. Energy Fuels | Ur Energy vs. Laramide Resources | Ur Energy vs. Mega Uranium |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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