Correlation Between AURELIUS Equity and Gold Road

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

By analyzing existing cross correlation between AURELIUS Equity Opportunities and Gold Road Resources, you can compare the effects of market volatilities on AURELIUS Equity and Gold Road 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 AURELIUS Equity with a short position of Gold Road. Check out your portfolio center. Please also check ongoing floating volatility patterns of AURELIUS Equity and Gold Road.

Diversification Opportunities for AURELIUS Equity and Gold Road

0.0

Correlation Coefficient

AURELIUS Equity  Gold Road

Pay attention - limited upside

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

Pair Corralation between AURELIUS Equity and Gold Road

If you would invest  120.00  in Gold Road Resources on December 20, 2024 and sell it today you would earn a total of  25.00  from holding Gold Road Resources or generate 20.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AURELIUS Equity Opportunities  vs.  Gold Road Resources

AURELIUS Equity Oppo

Risk-Adjusted Performance

Very Weak

Over the last 90 days AURELIUS Equity Opportunities has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, AURELIUS Equity is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Gold Road Resources

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Gold Road Resources are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Gold Road reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AURELIUS Equity and Gold Road

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

The idea behind AURELIUS Equity Opportunities and Gold Road Resources 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.