Correlation Between Group Ten and Auryn Mining
Can any of the company-specific risk be diversified away by investing in both Group Ten and Auryn Mining 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 Group Ten and Auryn Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Group Ten Metals and Auryn Mining Corp, you can compare the effects of market volatilities on Group Ten and Auryn Mining 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 Group Ten with a short position of Auryn Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Group Ten and Auryn Mining.
Diversification Opportunities for Group Ten and Auryn Mining
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Group and Auryn is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Group Ten Metals and Auryn Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auryn Mining Corp and Group Ten 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 Group Ten Metals are associated (or correlated) with Auryn Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auryn Mining Corp has no effect on the direction of Group Ten i.e., Group Ten and Auryn Mining go up and down completely randomly.
Pair Corralation between Group Ten and Auryn Mining
Assuming the 90 days horizon Group Ten Metals is expected to under-perform the Auryn Mining. But the otc stock apears to be less risky and, when comparing its historical volatility, Group Ten Metals is 1.59 times less risky than Auryn Mining. The otc stock trades about -0.15 of its potential returns per unit of risk. The Auryn Mining Corp is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 47.00 in Auryn Mining Corp on September 12, 2024 and sell it today you would lose (4.00) from holding Auryn Mining Corp or give up 8.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Group Ten Metals vs. Auryn Mining Corp
Performance |
| Timeline |
| Group Ten Metals |
| Auryn Mining Corp |
Group Ten and Auryn Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Group Ten and Auryn Mining
The main advantage of trading using opposite Group Ten and Auryn Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Group Ten position performs unexpectedly, Auryn Mining 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 Auryn Mining will offset losses from the drop in Auryn Mining's long position.| Group Ten vs. Ascendant Resources | Group Ten vs. Atico Mining | Group Ten vs. Prime Mining Corp | Group Ten vs. Wallbridge Mining |
| Auryn Mining vs. Medinah Minerals | Auryn Mining vs. Group Ten Metals | Auryn Mining vs. American Creek 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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