Correlation Between GoGold Resources and Aurion Resources
Can any of the company-specific risk be diversified away by investing in both GoGold Resources and Aurion 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 GoGold Resources and Aurion Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoGold Resources and Aurion Resources, you can compare the effects of market volatilities on GoGold Resources and Aurion 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 GoGold Resources with a short position of Aurion Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoGold Resources and Aurion Resources.
Diversification Opportunities for GoGold Resources and Aurion Resources
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GoGold and Aurion is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding GoGold Resources and Aurion Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurion Resources and GoGold Resources 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 GoGold Resources are associated (or correlated) with Aurion Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurion Resources has no effect on the direction of GoGold Resources i.e., GoGold Resources and Aurion Resources go up and down completely randomly.
Pair Corralation between GoGold Resources and Aurion Resources
Assuming the 90 days trading horizon GoGold Resources is expected to under-perform the Aurion Resources. In addition to that, GoGold Resources is 1.08 times more volatile than Aurion Resources. It trades about 0.0 of its total potential returns per unit of risk. Aurion Resources is currently generating about 0.02 per unit of volatility. If you would invest 56.00 in Aurion Resources on August 29, 2024 and sell it today you would earn a total of 3.00 from holding Aurion Resources or generate 5.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GoGold Resources vs. Aurion Resources
Performance |
| Timeline |
| GoGold Resources |
| Aurion Resources |
GoGold Resources and Aurion Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoGold Resources and Aurion Resources
The main advantage of trading using opposite GoGold Resources and Aurion Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoGold Resources position performs unexpectedly, Aurion 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 Aurion Resources will offset losses from the drop in Aurion Resources' long position.| GoGold Resources vs. Defiance Silver Corp | GoGold Resources vs. Liberty Gold Corp | GoGold Resources vs. Dolly Varden Silver | GoGold Resources vs. Minaurum Gold |
| Aurion Resources vs. Galway Metals | Aurion Resources vs. Minaurum Gold | Aurion Resources vs. BonTerra Resources | Aurion Resources vs. Aurania 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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