Correlation Between Aurelia Metals and Azimut Exploration
Can any of the company-specific risk be diversified away by investing in both Aurelia Metals and Azimut Exploration 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 Azimut Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurelia Metals Limited and Azimut Exploration, you can compare the effects of market volatilities on Aurelia Metals and Azimut Exploration 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 Azimut Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurelia Metals and Azimut Exploration.
Diversification Opportunities for Aurelia Metals and Azimut Exploration
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aurelia and Azimut is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Aurelia Metals Limited and Azimut Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Azimut Exploration 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 Limited are associated (or correlated) with Azimut Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Azimut Exploration has no effect on the direction of Aurelia Metals i.e., Aurelia Metals and Azimut Exploration go up and down completely randomly.
Pair Corralation between Aurelia Metals and Azimut Exploration
Assuming the 90 days horizon Aurelia Metals Limited is expected to under-perform the Azimut Exploration. In addition to that, Aurelia Metals is 1.52 times more volatile than Azimut Exploration. It trades about -0.03 of its total potential returns per unit of risk. Azimut Exploration is currently generating about 0.09 per unit of volatility. If you would invest 44.00 in Azimut Exploration on June 2, 2025 and sell it today you would earn a total of 10.00 from holding Azimut Exploration or generate 22.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurelia Metals Limited vs. Azimut Exploration
Performance |
| Timeline |
| Aurelia Metals |
| Azimut Exploration |
Aurelia Metals and Azimut Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurelia Metals and Azimut Exploration
The main advantage of trading using opposite Aurelia Metals and Azimut Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurelia Metals position performs unexpectedly, Azimut Exploration 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 Azimut Exploration will offset losses from the drop in Azimut Exploration's long position.| Aurelia Metals vs. Huntsman Exploration | Aurelia Metals vs. Adriatic Metals PLC | Aurelia Metals vs. Avarone Metals | Aurelia Metals vs. Almonty Industries |
| Azimut Exploration vs. Aurion Resources | Azimut Exploration vs. Endurance Gold | Azimut Exploration vs. Exploits Discovery Corp | Azimut Exploration vs. Red Pine Exploration |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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