Correlation Between Aurelia Metals and Pengana Private

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

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

Diversification Opportunities for Aurelia Metals and Pengana Private

0.3

Correlation Coefficient

Aurelia Metals  Pengana Private

Weak diversification

The 3 months correlation between Aurelia and Pengana is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Aurelia Metals and Pengana Private Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengana Private Equity 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 Pengana Private. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pengana Private Equity has no effect on the direction of Aurelia Metals i.e., Aurelia Metals and Pengana Private go up and down completely randomly.

Pair Corralation between Aurelia Metals and Pengana Private

Assuming the 90 days trading horizon Aurelia Metals is expected to generate 2.51 times more return on investment than Pengana Private. However, Aurelia Metals is 2.51 times more volatile than Pengana Private Equity. It trades about 0.03 of its potential returns per unit of risk. Pengana Private Equity is currently generating about -0.01 per unit of risk. If you would invest  15.00  in Aurelia Metals on October 9, 2024 and sell it today you would earn a total of  4.00  from holding Aurelia Metals or generate 26.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	99.8%
Values	Daily Returns

Aurelia Metals  vs.  Pengana Private Equity

Aurelia Metals

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Aurelia Metals are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain forward indicators, Aurelia Metals may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pengana Private Equity

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Pengana Private Equity are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Pengana Private is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Aurelia Metals and Pengana Private

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

The idea behind Aurelia Metals and Pengana Private Equity 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..