Correlation Between Snowline Gold and Aurion Resources
Can any of the company-specific risk be diversified away by investing in both Snowline 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 Snowline 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 Snowline Gold Corp and Aurion Resources, you can compare the effects of market volatilities on Snowline 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 Snowline Gold with a short position of Aurion Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snowline Gold and Aurion Resources.
Diversification Opportunities for Snowline Gold and Aurion Resources
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Snowline and Aurion is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Snowline Gold Corp and Aurion Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurion Resources and Snowline 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 Snowline Gold Corp 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 Snowline Gold i.e., Snowline Gold and Aurion Resources go up and down completely randomly.
Pair Corralation between Snowline Gold and Aurion Resources
Assuming the 90 days horizon Snowline Gold Corp is expected to generate 0.69 times more return on investment than Aurion Resources. However, Snowline Gold Corp is 1.46 times less risky than Aurion Resources. It trades about -0.27 of its potential returns per unit of risk. Aurion Resources is currently generating about -0.21 per unit of risk. If you would invest 434.00 in Snowline Gold Corp on August 26, 2024 and sell it today you would lose (62.00) from holding Snowline Gold Corp or give up 14.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Snowline Gold Corp vs. Aurion Resources
Performance |
| Timeline |
| Snowline Gold Corp |
| Aurion Resources |
Snowline Gold and Aurion Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snowline Gold and Aurion Resources
The main advantage of trading using opposite Snowline Gold and Aurion Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snowline 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.| Snowline Gold vs. Aurion Resources | Snowline Gold vs. Liberty Gold Corp | Snowline Gold vs. Orezone Gold Corp | Snowline Gold vs. Radisson Mining Resources |
| Aurion Resources vs. Ascendant Resources | Aurion Resources vs. Cantex Mine Development | Aurion Resources vs. Amarc Resources | Aurion Resources vs. Sterling Metals Corp |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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