Correlation Between Maple Gold and Aurion Resources
Can any of the company-specific risk be diversified away by investing in both Maple 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 Maple 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 Maple Gold Mines and Aurion Resources, you can compare the effects of market volatilities on Maple 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 Maple Gold with a short position of Aurion Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Gold and Aurion Resources.
Diversification Opportunities for Maple Gold and Aurion Resources
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Maple and Aurion is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Maple Gold Mines and Aurion Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurion Resources and Maple 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 Maple Gold Mines 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 Maple Gold i.e., Maple Gold and Aurion Resources go up and down completely randomly.
Pair Corralation between Maple Gold and Aurion Resources
Assuming the 90 days horizon Maple Gold is expected to generate 3.5 times less return on investment than Aurion Resources. In addition to that, Maple Gold is 1.87 times more volatile than Aurion Resources. It trades about 0.0 of its total potential returns per unit of risk. Aurion Resources is currently generating about 0.02 per unit of volatility. If you would invest 58.00 in Aurion Resources on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Aurion Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maple Gold Mines vs. Aurion Resources
Performance |
| Timeline |
| Maple Gold Mines |
| Aurion Resources |
Maple Gold and Aurion Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maple Gold and Aurion Resources
The main advantage of trading using opposite Maple Gold and Aurion Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple 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.| Maple Gold vs. First Majestic Silver | Maple Gold vs. Ivanhoe Energy | Maple Gold vs. Orezone Gold Corp | Maple Gold vs. Faraday Copper Corp |
| Aurion Resources vs. Galway Metals | Aurion Resources vs. Minaurum Gold | Aurion Resources vs. BonTerra Resources | Aurion Resources vs. Aurania Resources |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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