Correlation Between De Grey and Auking Mining
Can any of the company-specific risk be diversified away by investing in both De Grey and Auking Mining 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 De Grey and Auking Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between De Grey Mining and Auking Mining, you can compare the effects of market volatilities on De Grey and Auking Mining 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 De Grey with a short position of Auking Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of De Grey and Auking Mining.
Diversification Opportunities for De Grey and Auking Mining
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DEG and Auking is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding De Grey Mining and Auking Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auking Mining and De Grey 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 De Grey Mining are associated (or correlated) with Auking Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auking Mining has no effect on the direction of De Grey i.e., De Grey and Auking Mining go up and down completely randomly.
Pair Corralation between De Grey and Auking Mining
Assuming the 90 days trading horizon De Grey Mining is expected to generate 0.15 times more return on investment than Auking Mining. However, De Grey Mining is 6.49 times less risky than Auking Mining. It trades about 0.39 of its potential returns per unit of risk. Auking Mining is currently generating about -0.16 per unit of risk. If you would invest 179.00 in De Grey Mining on November 3, 2024 and sell it today you would earn a total of 22.00 from holding De Grey Mining or generate 12.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
De Grey Mining vs. Auking Mining
Performance |
| Timeline |
| De Grey Mining |
| Auking Mining |
De Grey and Auking Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with De Grey and Auking Mining
The main advantage of trading using opposite De Grey and Auking Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if De Grey position performs unexpectedly, Auking Mining 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 Auking Mining will offset losses from the drop in Auking Mining's long position.| De Grey vs. Autosports Group | De Grey vs. Lykos Metals | De Grey vs. Aristocrat Leisure | De Grey vs. Dalaroo Metals |
| Auking Mining vs. Super Retail Group | Auking Mining vs. Dexus Convenience Retail | Auking Mining vs. Charter Hall Retail | Auking Mining vs. Advanced Braking Technology |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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