Correlation Between Aurora Investment and Anglesey Mining

Can any of the company-specific risk be diversified away by investing in both Aurora Investment and Anglesey Mining 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 Aurora Investment and Anglesey Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aurora Investment Trust and Anglesey Mining, you can compare the effects of market volatilities on Aurora Investment and Anglesey Mining 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 Aurora Investment with a short position of Anglesey Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Investment and Anglesey Mining.

Diversification Opportunities for Aurora Investment and Anglesey Mining

-0.73

Correlation Coefficient

Aurora Investment  Anglesey Mining

Pay attention - limited upside

The 3 months correlation between Aurora and Anglesey is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Investment Trust and Anglesey Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglesey Mining and Aurora Investment 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 Aurora Investment Trust are associated (or correlated) with Anglesey Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglesey Mining has no effect on the direction of Aurora Investment i.e., Aurora Investment and Anglesey Mining go up and down completely randomly.

Pair Corralation between Aurora Investment and Anglesey Mining

Assuming the 90 days trading horizon Aurora Investment Trust is expected to generate 1.21 times more return on investment than Anglesey Mining. However, Aurora Investment is 1.21 times more volatile than Anglesey Mining. It trades about 0.1 of its potential returns per unit of risk. Anglesey Mining is currently generating about -0.07 per unit of risk. If you would invest  23,600  in Aurora Investment Trust on April 20, 2025 and sell it today you would earn a total of  1,400  from holding Aurora Investment Trust or generate 5.93% return on investment over 90 days.

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

Aurora Investment Trust  vs.  Anglesey Mining

Aurora Investment Trust

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Aurora Investment Trust are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Aurora Investment is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Anglesey Mining

Risk-Adjusted Performance

Very Weak

Over the last 90 days Anglesey Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Anglesey Mining is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Aurora Investment and Anglesey Mining

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

The idea behind Aurora Investment Trust and Anglesey Mining 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.