Correlation Between Ur Energy and Aston Bay
Can any of the company-specific risk be diversified away by investing in both Ur Energy and Aston Bay 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 Ur Energy and Aston Bay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ur Energy and Aston Bay Holdings, you can compare the effects of market volatilities on Ur Energy and Aston Bay 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 Ur Energy with a short position of Aston Bay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ur Energy and Aston Bay.
Diversification Opportunities for Ur Energy and Aston Bay
Pay attention - limited upside
The 3 months correlation between URE and Aston is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Ur Energy and Aston Bay Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aston Bay Holdings and Ur Energy 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 Ur Energy are associated (or correlated) with Aston Bay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aston Bay Holdings has no effect on the direction of Ur Energy i.e., Ur Energy and Aston Bay go up and down completely randomly.
Pair Corralation between Ur Energy and Aston Bay
Assuming the 90 days trading horizon Ur Energy is expected to generate 0.61 times more return on investment than Aston Bay. However, Ur Energy is 1.64 times less risky than Aston Bay. It trades about 0.11 of its potential returns per unit of risk. Aston Bay Holdings is currently generating about -0.24 per unit of risk. If you would invest 173.00 in Ur Energy on September 2, 2024 and sell it today you would earn a total of 10.00 from holding Ur Energy or generate 5.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ur Energy vs. Aston Bay Holdings
Performance |
| Timeline |
| Ur Energy |
| Aston Bay Holdings |
Ur Energy and Aston Bay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ur Energy and Aston Bay
The main advantage of trading using opposite Ur Energy and Aston Bay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ur Energy position performs unexpectedly, Aston Bay 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 Aston Bay will offset losses from the drop in Aston Bay's long position.| Ur Energy vs. Denison Mines Corp | Ur Energy vs. Energy Fuels | Ur Energy vs. Laramide Resources | Ur Energy vs. Mega Uranium |
| Aston Bay vs. Laramide Resources | Aston Bay vs. Chibougamau Independent Mines | Aston Bay vs. Avrupa Minerals | Aston Bay vs. Thunderstruck 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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