Correlation Between Hummingbird Resources and Aurion Resources
Can any of the company-specific risk be diversified away by investing in both Hummingbird 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 Hummingbird 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 Hummingbird Resources PLC and Aurion Resources, you can compare the effects of market volatilities on Hummingbird 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 Hummingbird Resources with a short position of Aurion Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hummingbird Resources and Aurion Resources.
Diversification Opportunities for Hummingbird Resources and Aurion Resources
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hummingbird and Aurion is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Hummingbird Resources PLC and Aurion Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurion Resources and Hummingbird 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 Hummingbird Resources PLC 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 Hummingbird Resources i.e., Hummingbird Resources and Aurion Resources go up and down completely randomly.
Pair Corralation between Hummingbird Resources and Aurion Resources
Assuming the 90 days horizon Hummingbird Resources PLC is expected to generate 2.4 times more return on investment than Aurion Resources. However, Hummingbird Resources is 2.4 times more volatile than Aurion Resources. It trades about 0.02 of its potential returns per unit of risk. Aurion Resources is currently generating about 0.02 per unit of risk. If you would invest 8.60 in Hummingbird Resources PLC on August 30, 2024 and sell it today you would lose (6.60) from holding Hummingbird Resources PLC or give up 76.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hummingbird Resources PLC vs. Aurion Resources
Performance |
| Timeline |
| Hummingbird Resources PLC |
| Aurion Resources |
Hummingbird Resources and Aurion Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hummingbird Resources and Aurion Resources
The main advantage of trading using opposite Hummingbird Resources and Aurion Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hummingbird 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.| Hummingbird Resources vs. Vertiv Holdings Co | Hummingbird Resources vs. Nasdaq Inc | Hummingbird Resources vs. McDonalds | Hummingbird Resources vs. Walmart |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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