Correlation Between Augusta Gold and Treasury Metals
Can any of the company-specific risk be diversified away by investing in both Augusta Gold and Treasury Metals 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 Treasury Metals 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 Treasury Metals, you can compare the effects of market volatilities on Augusta Gold and Treasury Metals 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 Treasury Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Augusta Gold and Treasury Metals.
Diversification Opportunities for Augusta Gold and Treasury Metals
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Augusta and Treasury is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Augusta Gold Corp and Treasury Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Treasury Metals 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 Treasury Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Treasury Metals has no effect on the direction of Augusta Gold i.e., Augusta Gold and Treasury Metals go up and down completely randomly.
Pair Corralation between Augusta Gold and Treasury Metals
Given the investment horizon of 90 days Augusta Gold Corp is expected to generate 0.91 times more return on investment than Treasury Metals. However, Augusta Gold Corp is 1.1 times less risky than Treasury Metals. It trades about 0.02 of its potential returns per unit of risk. Treasury Metals is currently generating about 0.01 per unit of risk. If you would invest 99.00 in Augusta Gold Corp on September 1, 2024 and sell it today you would lose (8.00) from holding Augusta Gold Corp or give up 8.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 77.8% |
| Values | Daily Returns |
Augusta Gold Corp vs. Treasury Metals
Performance |
| Timeline |
| Augusta Gold Corp |
| Treasury Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Augusta Gold and Treasury Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Augusta Gold and Treasury Metals
The main advantage of trading using opposite Augusta Gold and Treasury Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Augusta Gold position performs unexpectedly, Treasury Metals 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 Treasury Metals will offset losses from the drop in Treasury Metals' long position.| Augusta Gold vs. Artemis Gold | Augusta Gold vs. North Peak Resources | Augusta Gold vs. Amex Exploration | Augusta Gold vs. Brixton Metals |
| Treasury Metals vs. Nulegacy Gold | Treasury Metals vs. Labrador Gold Corp | Treasury Metals vs. Phenom Resources Corp | Treasury Metals vs. Rover Metals Corp |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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