Correlation Between Sandon Capital and Aurelia Metals
Can any of the company-specific risk be diversified away by investing in both Sandon Capital and Aurelia Metals 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 Sandon Capital and Aurelia Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sandon Capital Investments and Aurelia Metals, you can compare the effects of market volatilities on Sandon Capital and Aurelia Metals 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 Sandon Capital with a short position of Aurelia Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sandon Capital and Aurelia Metals.
Diversification Opportunities for Sandon Capital and Aurelia Metals
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sandon and Aurelia is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Sandon Capital Investments and Aurelia Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurelia Metals and Sandon Capital 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 Sandon Capital Investments are associated (or correlated) with Aurelia Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurelia Metals has no effect on the direction of Sandon Capital i.e., Sandon Capital and Aurelia Metals go up and down completely randomly.
Pair Corralation between Sandon Capital and Aurelia Metals
Assuming the 90 days trading horizon Sandon Capital is expected to generate 2.78 times less return on investment than Aurelia Metals. But when comparing it to its historical volatility, Sandon Capital Investments is 4.36 times less risky than Aurelia Metals. It trades about 0.12 of its potential returns per unit of risk. Aurelia Metals is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 18.00 in Aurelia Metals on November 3, 2024 and sell it today you would earn a total of 1.00 from holding Aurelia Metals or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Sandon Capital Investments vs. Aurelia Metals
Performance |
| Timeline |
| Sandon Capital Inves |
| Aurelia Metals |
Sandon Capital and Aurelia Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sandon Capital and Aurelia Metals
The main advantage of trading using opposite Sandon Capital and Aurelia Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sandon Capital position performs unexpectedly, Aurelia Metals 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 Aurelia Metals will offset losses from the drop in Aurelia Metals' long position.| Sandon Capital vs. Aneka Tambang Tbk | Sandon Capital vs. BHP Group Limited | Sandon Capital vs. Ecofibre | Sandon Capital vs. iShares Global Healthcare |
| Aurelia Metals vs. Northern Star Resources | Aurelia Metals vs. Evolution Mining | Aurelia Metals vs. Bluescope Steel | Aurelia Metals vs. Sandfire Resources NL |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |