Correlation Between Augusta Gold and Amani Gold
Can any of the company-specific risk be diversified away by investing in both Augusta Gold and Amani 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 Augusta Gold and Amani Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Augusta Gold Corp and Amani Gold Limited, you can compare the effects of market volatilities on Augusta Gold and Amani 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 Augusta Gold with a short position of Amani Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Augusta Gold and Amani Gold.
Diversification Opportunities for Augusta Gold and Amani Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Augusta and Amani is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Augusta Gold Corp and Amani Gold Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amani Gold Limited and Augusta 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 Augusta Gold Corp are associated (or correlated) with Amani Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amani Gold Limited has no effect on the direction of Augusta Gold i.e., Augusta Gold and Amani Gold go up and down completely randomly.
Pair Corralation between Augusta Gold and Amani Gold
If you would invest 91.00 in Augusta Gold Corp on November 27, 2024 and sell it today you would lose (6.00) from holding Augusta Gold Corp or give up 6.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Augusta Gold Corp vs. Amani Gold Limited
Performance |
| Timeline |
| Augusta Gold Corp |
| Amani Gold Limited |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Augusta Gold and Amani Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Augusta Gold and Amani Gold
The main advantage of trading using opposite Augusta Gold and Amani Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Augusta Gold position performs unexpectedly, Amani 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 Amani Gold will offset losses from the drop in Amani Gold's long position.| Augusta Gold vs. Artemis Gold | Augusta Gold vs. North Peak Resources | Augusta Gold vs. Amex Exploration | Augusta Gold vs. Brixton Metals |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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