Correlation Between Augusta Gold and North Peak
Can any of the company-specific risk be diversified away by investing in both Augusta Gold and North Peak 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 North Peak 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 North Peak Resources, you can compare the effects of market volatilities on Augusta Gold and North Peak 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 North Peak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Augusta Gold and North Peak.
Diversification Opportunities for Augusta Gold and North Peak
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Augusta and North is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Augusta Gold Corp and North Peak Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Peak Resources 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 North Peak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Peak Resources has no effect on the direction of Augusta Gold i.e., Augusta Gold and North Peak go up and down completely randomly.
Pair Corralation between Augusta Gold and North Peak
Given the investment horizon of 90 days Augusta Gold Corp is expected to generate 0.9 times more return on investment than North Peak. However, Augusta Gold Corp is 1.11 times less risky than North Peak. It trades about 0.02 of its potential returns per unit of risk. North Peak Resources is currently generating about 0.01 per unit of risk. If you would invest 106.00 in Augusta Gold Corp on November 27, 2024 and sell it today you would lose (21.00) from holding Augusta Gold Corp or give up 19.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Augusta Gold Corp vs. North Peak Resources
Performance |
| Timeline |
| Augusta Gold Corp |
| North Peak Resources |
Augusta Gold and North Peak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Augusta Gold and North Peak
The main advantage of trading using opposite Augusta Gold and North Peak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Augusta Gold position performs unexpectedly, North Peak 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 North Peak will offset losses from the drop in North Peak's long position.| Augusta Gold vs. Artemis Gold | Augusta Gold vs. North Peak Resources | Augusta Gold vs. Amex Exploration | Augusta Gold vs. Brixton Metals |
| North Peak vs. Lavras Gold Corp | North Peak vs. TRU Precious Metals | North Peak vs. Orefinders Resources | North Peak vs. Nine Mile 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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