Correlation Between AECOM TECHNOLOGY and MINCO SILVER

Can any of the company-specific risk be diversified away by investing in both AECOM TECHNOLOGY and MINCO SILVER 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 AECOM TECHNOLOGY and MINCO SILVER into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AECOM TECHNOLOGY and MINCO SILVER, you can compare the effects of market volatilities on AECOM TECHNOLOGY and MINCO SILVER 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 AECOM TECHNOLOGY with a short position of MINCO SILVER. Check out your portfolio center. Please also check ongoing floating volatility patterns of AECOM TECHNOLOGY and MINCO SILVER.

Diversification Opportunities for AECOM TECHNOLOGY and MINCO SILVER

0.64

Correlation Coefficient

AECOM TECHNOLOGY  MINCO SILVER

Poor diversification

The 3 months correlation between AECOM and MINCO is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding AECOM TECHNOLOGY and MINCO SILVER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MINCO SILVER and AECOM TECHNOLOGY 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 AECOM TECHNOLOGY are associated (or correlated) with MINCO SILVER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MINCO SILVER has no effect on the direction of AECOM TECHNOLOGY i.e., AECOM TECHNOLOGY and MINCO SILVER go up and down completely randomly.

Pair Corralation between AECOM TECHNOLOGY and MINCO SILVER

Assuming the 90 days trading horizon AECOM TECHNOLOGY is expected to generate 0.56 times more return on investment than MINCO SILVER. However, AECOM TECHNOLOGY is 1.77 times less risky than MINCO SILVER. It trades about 0.06 of its potential returns per unit of risk. MINCO SILVER is currently generating about 0.02 per unit of risk. If you would invest  8,826  in AECOM TECHNOLOGY on March 25, 2025 and sell it today you would earn a total of  674.00  from holding AECOM TECHNOLOGY or generate 7.64% return on investment over 90 days.

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

AECOM TECHNOLOGY  vs.  MINCO SILVER

AECOM TECHNOLOGY

Risk-Adjusted Performance

Insignificant

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

MINCO SILVER

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in MINCO SILVER are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable fundamental indicators, MINCO SILVER is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with AECOM TECHNOLOGY and MINCO SILVER

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

The idea behind AECOM TECHNOLOGY and MINCO SILVER 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.

Check out your portfolio center.

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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.