Correlation Between Aurora Investment and Bisichi Mining

Can any of the company-specific risk be diversified away by investing in both Aurora Investment and Bisichi 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 Bisichi 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 Bisichi Mining PLC, you can compare the effects of market volatilities on Aurora Investment and Bisichi 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 Bisichi Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Investment and Bisichi Mining.

Diversification Opportunities for Aurora Investment and Bisichi Mining

0.46

Correlation Coefficient

Aurora Investment  Bisichi Mining

Very weak diversification

The 3 months correlation between Aurora and Bisichi is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Investment Trust and Bisichi Mining PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bisichi Mining PLC 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 Bisichi Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bisichi Mining PLC has no effect on the direction of Aurora Investment i.e., Aurora Investment and Bisichi Mining go up and down completely randomly.

Pair Corralation between Aurora Investment and Bisichi Mining

Assuming the 90 days trading horizon Aurora Investment is expected to generate 1.25 times less return on investment than Bisichi Mining. But when comparing it to its historical volatility, Aurora Investment Trust is 2.07 times less risky than Bisichi Mining. It trades about 0.1 of its potential returns per unit of risk. Bisichi Mining PLC is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  8,680  in Bisichi Mining PLC on April 24, 2025 and sell it today you would earn a total of  570.00  from holding Bisichi Mining PLC or generate 6.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Aurora Investment Trust  vs.  Bisichi Mining PLC

Aurora Investment Trust

Risk-Adjusted Performance

OK

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.

Bisichi Mining PLC

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Bisichi Mining PLC are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Bisichi Mining may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Aurora Investment and Bisichi Mining

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

The idea behind Aurora Investment Trust and Bisichi Mining PLC 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.