Correlation Between Amex Exploration and Augusta Gold
Can any of the company-specific risk be diversified away by investing in both Amex Exploration and Augusta Gold 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 Amex Exploration and Augusta Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amex Exploration and Augusta Gold Corp, you can compare the effects of market volatilities on Amex Exploration and Augusta Gold 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 Amex Exploration with a short position of Augusta Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amex Exploration and Augusta Gold.
Diversification Opportunities for Amex Exploration and Augusta Gold
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amex and Augusta is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Amex Exploration and Augusta Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Augusta Gold Corp and Amex Exploration 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 Amex Exploration are associated (or correlated) with Augusta Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Augusta Gold Corp has no effect on the direction of Amex Exploration i.e., Amex Exploration and Augusta Gold go up and down completely randomly.
Pair Corralation between Amex Exploration and Augusta Gold
Assuming the 90 days horizon Amex Exploration is expected to under-perform the Augusta Gold. But the otc stock apears to be less risky and, when comparing its historical volatility, Amex Exploration is 1.11 times less risky than Augusta Gold. The otc stock trades about -0.05 of its potential returns per unit of risk. The Augusta Gold Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 85.00 in Augusta Gold Corp on September 3, 2024 and sell it today you would earn a total of 14.00 from holding Augusta Gold Corp or generate 16.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amex Exploration vs. Augusta Gold Corp
Performance |
| Timeline |
| Amex Exploration |
| Augusta Gold Corp |
Amex Exploration and Augusta Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amex Exploration and Augusta Gold
The main advantage of trading using opposite Amex Exploration and Augusta Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amex Exploration position performs unexpectedly, Augusta Gold 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 Augusta Gold will offset losses from the drop in Augusta Gold's long position.| Amex Exploration vs. Minnova Corp | Amex Exploration vs. Argo Gold | Amex Exploration vs. Advance Gold Corp | Amex Exploration vs. Blue Star Gold |
| Augusta Gold vs. Harmony Gold Mining | Augusta Gold vs. SPACE | Augusta Gold vs. T Rowe Price | Augusta Gold vs. Ampleforth |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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