Correlation Between Artemis Gold and Augusta Gold
Can any of the company-specific risk be diversified away by investing in both Artemis Gold 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 Artemis Gold and Augusta Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artemis Gold and Augusta Gold Corp, you can compare the effects of market volatilities on Artemis Gold 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 Artemis Gold with a short position of Augusta Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artemis Gold and Augusta Gold.
Diversification Opportunities for Artemis Gold and Augusta Gold
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Artemis and Augusta is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Artemis Gold 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 Artemis 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 Artemis Gold 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 Artemis Gold i.e., Artemis Gold and Augusta Gold go up and down completely randomly.
Pair Corralation between Artemis Gold and Augusta Gold
Assuming the 90 days horizon Artemis Gold is expected to generate 0.27 times more return on investment than Augusta Gold. However, Artemis Gold is 3.67 times less risky than Augusta Gold. It trades about 0.27 of its potential returns per unit of risk. Augusta Gold Corp is currently generating about -0.02 per unit of risk. If you would invest 985.00 in Artemis Gold on November 4, 2024 and sell it today you would earn a total of 104.00 from holding Artemis Gold or generate 10.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artemis Gold vs. Augusta Gold Corp
Performance |
| Timeline |
| Artemis Gold |
| Augusta Gold Corp |
Artemis Gold and Augusta Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artemis Gold and Augusta Gold
The main advantage of trading using opposite Artemis Gold and Augusta Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artemis Gold 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.| Artemis Gold vs. Newcore Gold | Artemis Gold vs. Cerrado Gold | Artemis Gold vs. Palamina Corp | Artemis Gold vs. Gold Springs Resource |
| Augusta Gold vs. Artemis Gold | Augusta Gold vs. North Peak Resources | Augusta Gold vs. Amex Exploration | Augusta Gold vs. Brixton Metals |
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.
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