Correlation Between Granite Creek and Aurelia Metals

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

By analyzing existing cross correlation between Granite Creek Copper and Aurelia Metals Limited, you can compare the effects of market volatilities on Granite Creek and Aurelia Metals 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 Granite Creek with a short position of Aurelia Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Granite Creek and Aurelia Metals.

Diversification Opportunities for Granite Creek and Aurelia Metals

0.36

Correlation Coefficient

Granite Creek  Aurelia Metals

Weak diversification

The 3 months correlation between Granite and Aurelia is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Granite Creek Copper and Aurelia Metals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurelia Metals and Granite Creek 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 Granite Creek Copper are associated (or correlated) with Aurelia Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurelia Metals has no effect on the direction of Granite Creek i.e., Granite Creek and Aurelia Metals go up and down completely randomly.

Pair Corralation between Granite Creek and Aurelia Metals

If you would invest  1.46  in Granite Creek Copper on August 31, 2024 and sell it today you would lose (0.04) from holding Granite Creek Copper or give up 2.74% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.65%
Values	Daily Returns

Granite Creek Copper  vs.  Aurelia Metals Limited

Granite Creek Copper

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Granite Creek Copper are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Granite Creek may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Aurelia Metals

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Aurelia Metals Limited are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Aurelia Metals is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Granite Creek and Aurelia Metals

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

The idea behind Granite Creek Copper and Aurelia Metals Limited 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.