Correlation Between Hummingbird Resources and Aurelius Minerals

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

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

Diversification Opportunities for Hummingbird Resources and Aurelius Minerals

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Correlation Coefficient

Hummingbird Resources  Aurelius Minerals

Pay attention - limited upside

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

Pair Corralation between Hummingbird Resources and Aurelius Minerals

If you would invest  0.15  in Aurelius Minerals on September 5, 2024 and sell it today you would earn a total of  0.00  from holding Aurelius Minerals or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Hummingbird Resources PLC  vs.  Aurelius Minerals

Hummingbird Resources PLC

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Hummingbird Resources PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Aurelius Minerals

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Hummingbird Resources and Aurelius Minerals

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

The idea behind Hummingbird Resources PLC and Aurelius Minerals 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.