Correlation Between Cantex Mine and Aurelia Metals
Can any of the company-specific risk be diversified away by investing in both Cantex Mine 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 Cantex Mine and Aurelia Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cantex Mine Development and Aurelia Metals Limited, you can compare the effects of market volatilities on Cantex Mine 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 Cantex Mine with a short position of Aurelia Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantex Mine and Aurelia Metals.
Diversification Opportunities for Cantex Mine and Aurelia Metals
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cantex and Aurelia is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Cantex Mine Development and Aurelia Metals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurelia Metals and Cantex Mine 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 Cantex Mine Development 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 Cantex Mine i.e., Cantex Mine and Aurelia Metals go up and down completely randomly.
Pair Corralation between Cantex Mine and Aurelia Metals
Assuming the 90 days horizon Cantex Mine Development is expected to under-perform the Aurelia Metals. In addition to that, Cantex Mine is 2.64 times more volatile than Aurelia Metals Limited. It trades about -0.15 of its total potential returns per unit of risk. Aurelia Metals Limited is currently generating about -0.22 per unit of volatility. If you would invest 18.00 in Aurelia Metals Limited on August 28, 2024 and sell it today you would lose (3.00) from holding Aurelia Metals Limited or give up 16.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cantex Mine Development vs. Aurelia Metals Limited
Performance |
| Timeline |
| Cantex Mine Development |
| Aurelia Metals |
Cantex Mine and Aurelia Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantex Mine and Aurelia Metals
The main advantage of trading using opposite Cantex Mine and Aurelia Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantex Mine 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.The idea behind Cantex Mine Development and Aurelia Metals Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Aurelia Metals vs. Champion Bear Resources | Aurelia Metals vs. Baroyeca Gold Silver | Aurelia Metals vs. Centaurus Metals Limited | Aurelia Metals vs. Edison Cobalt 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |