Correlation Between Mako Mining and Aurion Resources
Can any of the company-specific risk be diversified away by investing in both Mako Mining 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 Mako Mining and Aurion Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mako Mining Corp and Aurion Resources, you can compare the effects of market volatilities on Mako Mining 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 Mako Mining with a short position of Aurion Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mako Mining and Aurion Resources.
Diversification Opportunities for Mako Mining and Aurion Resources
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mako and Aurion is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Mako Mining Corp and Aurion Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurion Resources and Mako Mining 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 Mako Mining Corp 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 Mako Mining i.e., Mako Mining and Aurion Resources go up and down completely randomly.
Pair Corralation between Mako Mining and Aurion Resources
Assuming the 90 days horizon Mako Mining Corp is expected to generate 0.46 times more return on investment than Aurion Resources. However, Mako Mining Corp is 2.18 times less risky than Aurion Resources. It trades about -0.08 of its potential returns per unit of risk. Aurion Resources is currently generating about -0.16 per unit of risk. If you would invest 226.00 in Mako Mining Corp on September 1, 2024 and sell it today you would lose (8.00) from holding Mako Mining Corp or give up 3.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mako Mining Corp vs. Aurion Resources
Performance |
| Timeline |
| Mako Mining Corp |
| Aurion Resources |
Mako Mining and Aurion Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mako Mining and Aurion Resources
The main advantage of trading using opposite Mako Mining and Aurion Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mako Mining 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.| Mako Mining vs. Labrador Gold Corp | Mako Mining vs. Exploits Discovery Corp | Mako Mining vs. Puma Exploration | Mako Mining vs. White Gold 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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