Correlation Between Surge Battery and Aurwest Resources

Can any of the company-specific risk be diversified away by investing in both Surge Battery and Aurwest Resources 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 Surge Battery and Aurwest Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Surge Battery Metals and Aurwest Resources, you can compare the effects of market volatilities on Surge Battery and Aurwest Resources 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 Surge Battery with a short position of Aurwest Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surge Battery and Aurwest Resources.

Diversification Opportunities for Surge Battery and Aurwest Resources

0.0

Correlation Coefficient

Surge Battery  Aurwest Resources

Pay attention - limited upside

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

Pair Corralation between Surge Battery and Aurwest Resources

If you would invest  25.00  in Surge Battery Metals on December 29, 2024 and sell it today you would earn a total of  1.00  from holding Surge Battery Metals or generate 4.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Surge Battery Metals  vs.  Aurwest Resources

Surge Battery Metals

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Surge Battery Metals are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward indicators, Surge Battery may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Aurwest Resources

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aurwest Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Aurwest Resources is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Surge Battery and Aurwest Resources

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

The idea behind Surge Battery Metals and Aurwest 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.