Correlation Between AuQ Gold and SSR Mining

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

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

Diversification Opportunities for AuQ Gold and SSR Mining

-0.76

Correlation Coefficient

AuQ Gold  SSR Mining

Pay attention - limited upside

The 3 months correlation between AuQ and SSR is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding AuQ Gold Mining and SSR Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSR Mining and AuQ Gold 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 AuQ Gold Mining are associated (or correlated) with SSR Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSR Mining has no effect on the direction of AuQ Gold i.e., AuQ Gold and SSR Mining go up and down completely randomly.

Pair Corralation between AuQ Gold and SSR Mining

If you would invest  400.00  in SSR Mining on January 23, 2024 and sell it today you would earn a total of  121.00  from holding SSR Mining or generate 30.25% return on investment over 90 days.

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

AuQ Gold Mining  vs.  SSR Mining

AuQ Gold Mining

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AuQ Gold Mining are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, AuQ Gold reported solid returns over the last few months and may actually be approaching a breakup point.

SSR Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SSR Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in May 2024. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with AuQ Gold and SSR Mining

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

The idea behind AuQ Gold Mining and SSR 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.