Correlation Between Aumega Metals and Clean Seas

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

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

Diversification Opportunities for Aumega Metals and Clean Seas

-0.53

Correlation Coefficient

Aumega Metals  Clean Seas

Excellent diversification

The 3 months correlation between Aumega and Clean is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Aumega Metals and Clean Seas Seafood in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clean Seas Seafood and Aumega 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 Aumega Metals are associated (or correlated) with Clean Seas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clean Seas Seafood has no effect on the direction of Aumega Metals i.e., Aumega Metals and Clean Seas go up and down completely randomly.

Pair Corralation between Aumega Metals and Clean Seas

Assuming the 90 days trading horizon Aumega Metals is expected to under-perform the Clean Seas. In addition to that, Aumega Metals is 4.36 times more volatile than Clean Seas Seafood. It trades about -0.08 of its total potential returns per unit of risk. Clean Seas Seafood is currently generating about 0.13 per unit of volatility. If you would invest  13.00  in Clean Seas Seafood on April 23, 2025 and sell it today you would earn a total of  1.00  from holding Clean Seas Seafood or generate 7.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Aumega Metals  vs.  Clean Seas Seafood

Aumega Metals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aumega Metals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's primary indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Clean Seas Seafood

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Clean Seas Seafood are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Clean Seas may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Aumega Metals and Clean Seas

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

The idea behind Aumega Metals and Clean Seas Seafood 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.