Correlation Between Matador Mining and Aurion Resources
Can any of the company-specific risk be diversified away by investing in both Matador 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 Matador 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 Matador Mining Limited and Aurion Resources, you can compare the effects of market volatilities on Matador 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 Matador Mining with a short position of Aurion Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matador Mining and Aurion Resources.
Diversification Opportunities for Matador Mining and Aurion Resources
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Matador and Aurion is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Matador Mining Limited and Aurion Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurion Resources and Matador 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 Matador Mining Limited 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 Matador Mining i.e., Matador Mining and Aurion Resources go up and down completely randomly.
Pair Corralation between Matador Mining and Aurion Resources
If you would invest 6.48 in Matador Mining Limited on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Matador Mining Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Matador Mining Limited vs. Aurion Resources
Performance |
| Timeline |
| Matador Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Aurion Resources |
Matador Mining and Aurion Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matador Mining and Aurion Resources
The main advantage of trading using opposite Matador Mining and Aurion Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matador 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.| Matador Mining vs. Rio2 Limited | Matador Mining vs. Aurion Resources | Matador Mining vs. Norsemont Mining | Matador Mining vs. Minaurum Gold |
| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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