Correlation Between Resolute Mining and Aris Mining
Can any of the company-specific risk be diversified away by investing in both Resolute Mining and Aris Mining 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 Resolute Mining and Aris Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Resolute Mining Limited and Aris Mining, you can compare the effects of market volatilities on Resolute Mining and Aris Mining 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 Resolute Mining with a short position of Aris Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Resolute Mining and Aris Mining.
Diversification Opportunities for Resolute Mining and Aris Mining
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Resolute and Aris is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Resolute Mining Limited and Aris Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aris Mining and Resolute Mining 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 Resolute Mining Limited are associated (or correlated) with Aris Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aris Mining has no effect on the direction of Resolute Mining i.e., Resolute Mining and Aris Mining go up and down completely randomly.
Pair Corralation between Resolute Mining and Aris Mining
Assuming the 90 days horizon Resolute Mining is expected to generate 1.51 times less return on investment than Aris Mining. In addition to that, Resolute Mining is 1.47 times more volatile than Aris Mining. It trades about 0.1 of its total potential returns per unit of risk. Aris Mining is currently generating about 0.23 per unit of volatility. If you would invest 694.00 in Aris Mining on August 18, 2025 and sell it today you would earn a total of 431.00 from holding Aris Mining or generate 62.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Resolute Mining Limited vs. Aris Mining
Performance |
| Timeline |
| Resolute Mining |
| Aris Mining |
Resolute Mining and Aris Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Resolute Mining and Aris Mining
The main advantage of trading using opposite Resolute Mining and Aris Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Resolute Mining position performs unexpectedly, Aris Mining 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 Aris Mining will offset losses from the drop in Aris Mining's long position.| Resolute Mining vs. Snowline Gold Corp | Resolute Mining vs. Huabao International Holdings | Resolute Mining vs. Bellevue Gold Limited | Resolute Mining vs. Mineros SA |
| Aris Mining vs. West African Resources | Aris Mining vs. Montage Gold Corp | Aris Mining vs. Resolute Mining Limited | Aris Mining vs. Allied Gold |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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