Correlation Between Maple Peak and Aurora Royalties
Can any of the company-specific risk be diversified away by investing in both Maple Peak and Aurora Royalties 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 Maple Peak and Aurora Royalties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maple Peak Investments and Aurora Royalties, you can compare the effects of market volatilities on Maple Peak and Aurora Royalties 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 Maple Peak with a short position of Aurora Royalties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Peak and Aurora Royalties.
Diversification Opportunities for Maple Peak and Aurora Royalties
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Maple and Aurora is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Maple Peak Investments and Aurora Royalties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Royalties and Maple Peak 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 Maple Peak Investments are associated (or correlated) with Aurora Royalties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurora Royalties has no effect on the direction of Maple Peak i.e., Maple Peak and Aurora Royalties go up and down completely randomly.
Pair Corralation between Maple Peak and Aurora Royalties
If you would invest 1.50 in Aurora Royalties on September 3, 2024 and sell it today you would earn a total of 0.50 from holding Aurora Royalties or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Maple Peak Investments vs. Aurora Royalties
Performance |
| Timeline |
| Maple Peak Investments |
| Aurora Royalties |
Maple Peak and Aurora Royalties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maple Peak and Aurora Royalties
The main advantage of trading using opposite Maple Peak and Aurora Royalties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple Peak position performs unexpectedly, Aurora Royalties 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 Aurora Royalties will offset losses from the drop in Aurora Royalties' long position.| Maple Peak vs. Brookfield Asset Management | Maple Peak vs. MAG Silver Corp | Maple Peak vs. NeXGold Mining Corp | Maple Peak vs. Doman Building Materials |
| Aurora Royalties vs. Champion Gaming Group | Aurora Royalties vs. Broadcom | Aurora Royalties vs. Northstar Clean Technologies | Aurora Royalties vs. Caribbean Utilities |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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