Correlation Between Canso Select and Aurania Resources
Can any of the company-specific risk be diversified away by investing in both Canso Select and Aurania Resources 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 Canso Select and Aurania Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canso Select Opportunities and Aurania Resources, you can compare the effects of market volatilities on Canso Select and Aurania Resources 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 Canso Select with a short position of Aurania Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canso Select and Aurania Resources.
Diversification Opportunities for Canso Select and Aurania Resources
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Canso and Aurania is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Canso Select Opportunities and Aurania Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurania Resources and Canso Select 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 Canso Select Opportunities are associated (or correlated) with Aurania Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurania Resources has no effect on the direction of Canso Select i.e., Canso Select and Aurania Resources go up and down completely randomly.
Pair Corralation between Canso Select and Aurania Resources
Assuming the 90 days trading horizon Canso Select Opportunities is expected to under-perform the Aurania Resources. But the stock apears to be less risky and, when comparing its historical volatility, Canso Select Opportunities is 2.08 times less risky than Aurania Resources. The stock trades about -0.05 of its potential returns per unit of risk. The Aurania Resources is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 28.00 in Aurania Resources on September 1, 2024 and sell it today you would earn a total of 16.00 from holding Aurania Resources or generate 57.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Canso Select Opportunities vs. Aurania Resources
Performance |
| Timeline |
| Canso Select Opportu |
| Aurania Resources |
Canso Select and Aurania Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canso Select and Aurania Resources
The main advantage of trading using opposite Canso Select and Aurania Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canso Select position performs unexpectedly, Aurania Resources 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 Aurania Resources will offset losses from the drop in Aurania Resources' long position.| Canso Select vs. Arbor Metals Corp | Canso Select vs. Sparx Technology | Canso Select vs. Questor Technology | Canso Select vs. Arizona Metals Corp |
| Aurania Resources vs. Minaurum Gold | Aurania Resources vs. Dolly Varden Silver | Aurania Resources vs. Santacruz Silv | Aurania Resources vs. GoGold Resources |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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