Correlation Between Minaurum Gold and Aurania Resources
Can any of the company-specific risk be diversified away by investing in both Minaurum Gold and Aurania 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 Minaurum Gold and Aurania Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Minaurum Gold and Aurania Resources, you can compare the effects of market volatilities on Minaurum Gold and Aurania 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 Minaurum Gold with a short position of Aurania Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minaurum Gold and Aurania Resources.
Diversification Opportunities for Minaurum Gold and Aurania Resources
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Minaurum and Aurania is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Minaurum Gold and Aurania Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurania Resources and Minaurum 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 Minaurum Gold are associated (or correlated) with Aurania Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurania Resources has no effect on the direction of Minaurum Gold i.e., Minaurum Gold and Aurania Resources go up and down completely randomly.
Pair Corralation between Minaurum Gold and Aurania Resources
Assuming the 90 days horizon Minaurum Gold is expected to generate 1.32 times more return on investment than Aurania Resources. However, Minaurum Gold is 1.32 times more volatile than Aurania Resources. It trades about 0.05 of its potential returns per unit of risk. Aurania Resources is currently generating about 0.04 per unit of risk. If you would invest 13.00 in Minaurum Gold on August 26, 2024 and sell it today you would earn a total of 8.00 from holding Minaurum Gold or generate 61.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Minaurum Gold vs. Aurania Resources
Performance |
| Timeline |
| Minaurum Gold |
| Aurania Resources |
Minaurum Gold and Aurania Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minaurum Gold and Aurania Resources
The main advantage of trading using opposite Minaurum Gold and Aurania Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minaurum Gold position performs unexpectedly, Aurania 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 Aurania Resources will offset losses from the drop in Aurania Resources' long position.| Minaurum Gold vs. First Majestic Silver | Minaurum Gold vs. Ivanhoe Energy | Minaurum Gold vs. Orezone Gold Corp | Minaurum Gold vs. Faraday Copper Corp |
| Aurania Resources vs. Data Communications Management | Aurania Resources vs. Wilmington Capital Management | Aurania Resources vs. Element Fleet Management | Aurania Resources vs. Osisko Metals |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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