Correlation Between Bullion Gold and Aurelia Metals
Can any of the company-specific risk be diversified away by investing in both Bullion Gold 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 Bullion Gold and Aurelia Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bullion Gold Resources and Aurelia Metals Limited, you can compare the effects of market volatilities on Bullion Gold 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 Bullion Gold with a short position of Aurelia Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bullion Gold and Aurelia Metals.
Diversification Opportunities for Bullion Gold and Aurelia Metals
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bullion and Aurelia is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Bullion Gold Resources and Aurelia Metals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurelia Metals and Bullion 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 Bullion Gold Resources 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 Bullion Gold i.e., Bullion Gold and Aurelia Metals go up and down completely randomly.
Pair Corralation between Bullion Gold and Aurelia Metals
If you would invest 15.00 in Aurelia Metals Limited on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Aurelia Metals Limited 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 |
Bullion Gold Resources vs. Aurelia Metals Limited
Performance |
| Timeline |
| Bullion Gold Resources |
| Aurelia Metals |
Bullion Gold and Aurelia Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bullion Gold and Aurelia Metals
The main advantage of trading using opposite Bullion Gold and Aurelia Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bullion Gold 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.| Bullion Gold vs. Rockridge Resources | Bullion Gold vs. Ameriwest Lithium | Bullion Gold vs. Osisko Metals Incorporated | Bullion Gold vs. Volt Lithium Corp |
| Aurelia Metals vs. Rockridge Resources | Aurelia Metals vs. Ameriwest Lithium | Aurelia Metals vs. Osisko Metals Incorporated | Aurelia Metals vs. Volt Lithium 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stocks Directory Find actively traded stocks across global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |