Correlation Between POSCO Holdings and Aurion Resources

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

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

Diversification Opportunities for POSCO Holdings and Aurion Resources

0.18

Correlation Coefficient

POSCO Holdings  Aurion Resources

Average diversification

The 3 months correlation between POSCO and Aurion is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding POSCO Holdings and Aurion Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurion Resources and POSCO Holdings 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 POSCO Holdings are associated (or correlated) with Aurion Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurion Resources has no effect on the direction of POSCO Holdings i.e., POSCO Holdings and Aurion Resources go up and down completely randomly.

Pair Corralation between POSCO Holdings and Aurion Resources

Considering the 90-day investment horizon POSCO Holdings is expected to generate 0.8 times more return on investment than Aurion Resources. However, POSCO Holdings is 1.26 times less risky than Aurion Resources. It trades about 0.1 of its potential returns per unit of risk. Aurion Resources is currently generating about -0.02 per unit of risk. If you would invest  4,604  in POSCO Holdings on May 7, 2025 and sell it today you would earn a total of  632.00  from holding POSCO Holdings or generate 13.73% return on investment over 90 days.

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

POSCO Holdings  vs.  Aurion Resources

POSCO Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in POSCO Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain forward-looking signals, POSCO Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Aurion Resources

Risk-Adjusted Performance

Very Weak

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

Pair Trading with POSCO Holdings and Aurion Resources

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

The idea behind POSCO Holdings and Aurion Resources 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.