Correlation Between Auxico Resources and Argentum

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

By analyzing existing cross correlation between Auxico Resources Canada and Argentum 47, you can compare the effects of market volatilities on Auxico Resources and Argentum 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 Auxico Resources with a short position of Argentum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auxico Resources and Argentum.

Diversification Opportunities for Auxico Resources and Argentum

0.0

Correlation Coefficient

Auxico Resources  Argentum

Pay attention - limited upside

The 3 months correlation between Auxico and Argentum is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Auxico Resources Canada and Argentum 47 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argentum 47 and Auxico Resources 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 Auxico Resources Canada are associated (or correlated) with Argentum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argentum 47 has no effect on the direction of Auxico Resources i.e., Auxico Resources and Argentum go up and down completely randomly.

Pair Corralation between Auxico Resources and Argentum

If you would invest  0.70  in Argentum 47 on May 7, 2025 and sell it today you would lose (0.19) from holding Argentum 47 or give up 27.14% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Auxico Resources Canada  vs.  Argentum 47

Auxico Resources Canada

Risk-Adjusted Performance

Very Weak

Over the last 90 days Auxico Resources Canada has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward indicators, Auxico Resources is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Argentum 47

Risk-Adjusted Performance

Very Weak

Over the last 90 days Argentum 47 has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, Argentum is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Auxico Resources and Argentum

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

The idea behind Auxico Resources Canada and Argentum 47 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.