Correlation Between Boliden AB and Aurelia Metals
Can any of the company-specific risk be diversified away by investing in both Boliden AB and Aurelia 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 Boliden AB and Aurelia Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boliden AB and Aurelia Metals Limited, you can compare the effects of market volatilities on Boliden AB and Aurelia 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 Boliden AB with a short position of Aurelia Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boliden AB and Aurelia Metals.
Diversification Opportunities for Boliden AB and Aurelia Metals
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Boliden and Aurelia is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Boliden AB and Aurelia Metals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurelia Metals and Boliden AB 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 Boliden AB are associated (or correlated) with Aurelia Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurelia Metals has no effect on the direction of Boliden AB i.e., Boliden AB and Aurelia Metals go up and down completely randomly.
Pair Corralation between Boliden AB and Aurelia Metals
If you would invest 3.31 in Aurelia Metals Limited on September 20, 2024 and sell it today you would earn a total of 3.73 from holding Aurelia Metals Limited or generate 112.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Boliden AB vs. Aurelia Metals Limited
Performance |
| Timeline |
| Boliden AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Aurelia Metals |
Boliden AB and Aurelia Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boliden AB and Aurelia Metals
The main advantage of trading using opposite Boliden AB and Aurelia Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boliden AB position performs unexpectedly, Aurelia 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 Aurelia Metals will offset losses from the drop in Aurelia Metals' long position.| Boliden AB vs. Avarone Metals | Boliden AB vs. Aurelia Metals Limited | Boliden AB vs. Adriatic Metals PLC | Boliden AB vs. Huntsman Exploration |
| Aurelia Metals vs. IGO Limited | Aurelia Metals vs. Focus Graphite | Aurelia Metals vs. Anson Resources Limited | Aurelia Metals vs. Avarone Metals |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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