Correlation Between Aurelia Metals and Gindalbie Metals

Can any of the company-specific risk be diversified away by investing in both Aurelia Metals and Gindalbie 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 Aurelia Metals and Gindalbie Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aurelia Metals and Gindalbie Metals, you can compare the effects of market volatilities on Aurelia Metals and Gindalbie 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 Aurelia Metals with a short position of Gindalbie Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurelia Metals and Gindalbie Metals.

Diversification Opportunities for Aurelia Metals and Gindalbie Metals

0.0

Correlation Coefficient

Aurelia Metals  Gindalbie Metals

Pay attention - limited upside

The 3 months correlation between Aurelia and Gindalbie is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aurelia Metals and Gindalbie Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gindalbie Metals and Aurelia Metals 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 Aurelia Metals are associated (or correlated) with Gindalbie Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gindalbie Metals has no effect on the direction of Aurelia Metals i.e., Aurelia Metals and Gindalbie Metals go up and down completely randomly.

Pair Corralation between Aurelia Metals and Gindalbie Metals

If you would invest (100.00) in Gindalbie Metals on September 26, 2024 and sell it today you would earn a total of  100.00  from holding Gindalbie Metals or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Aurelia Metals  vs.  Gindalbie Metals

Aurelia Metals

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Aurelia Metals are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable forward indicators, Aurelia Metals is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Gindalbie Metals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gindalbie Metals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental drivers, Gindalbie Metals is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Aurelia Metals and Gindalbie Metals

The main advantage of trading using opposite Aurelia Metals and Gindalbie Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurelia Metals position performs unexpectedly, Gindalbie 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 Gindalbie Metals will offset losses from the drop in Gindalbie Metals' long position.

The idea behind Aurelia Metals and Gindalbie Metals pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.