Correlation Between Marvel Gold and Aurion Resources
Can any of the company-specific risk be diversified away by investing in both Marvel Gold 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 Marvel Gold and Aurion Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marvel Gold Limited and Aurion Resources, you can compare the effects of market volatilities on Marvel Gold 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 Marvel Gold with a short position of Aurion Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marvel Gold and Aurion Resources.
Diversification Opportunities for Marvel Gold and Aurion Resources
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Marvel and Aurion is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Marvel Gold Limited and Aurion Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurion Resources and Marvel Gold 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 Marvel Gold Limited 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 Marvel Gold i.e., Marvel Gold and Aurion Resources go up and down completely randomly.
Pair Corralation between Marvel Gold and Aurion Resources
Assuming the 90 days horizon Marvel Gold Limited is expected to under-perform the Aurion Resources. In addition to that, Marvel Gold is 1.34 times more volatile than Aurion Resources. It trades about -0.07 of its total potential returns per unit of risk. Aurion Resources is currently generating about 0.04 per unit of volatility. If you would invest 35.00 in Aurion Resources on September 1, 2024 and sell it today you would earn a total of 6.00 from holding Aurion Resources or generate 17.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marvel Gold Limited vs. Aurion Resources
Performance |
| Timeline |
| Marvel Gold Limited |
| Aurion Resources |
Marvel Gold and Aurion Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marvel Gold and Aurion Resources
The main advantage of trading using opposite Marvel Gold and Aurion Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marvel Gold 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.| Marvel Gold vs. Aurion Resources | Marvel Gold vs. Rio2 Limited | Marvel Gold vs. Palamina Corp | Marvel Gold vs. BTU Metals Corp |
| Aurion Resources vs. Minnova Corp | Aurion Resources vs. Argo Gold | Aurion Resources vs. Advance Gold Corp | Aurion Resources vs. Blue Star Gold |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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