Correlation Between Augusta Gold and Nine Mile
Can any of the company-specific risk be diversified away by investing in both Augusta Gold and Nine Mile 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 Nine Mile 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 Nine Mile Metals, you can compare the effects of market volatilities on Augusta Gold and Nine Mile 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 Nine Mile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Augusta Gold and Nine Mile.
Diversification Opportunities for Augusta Gold and Nine Mile
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Augusta and Nine is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Augusta Gold Corp and Nine Mile Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nine Mile 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 Nine Mile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nine Mile Metals has no effect on the direction of Augusta Gold i.e., Augusta Gold and Nine Mile go up and down completely randomly.
Pair Corralation between Augusta Gold and Nine Mile
Given the investment horizon of 90 days Augusta Gold Corp is expected to generate 1.25 times more return on investment than Nine Mile. However, Augusta Gold is 1.25 times more volatile than Nine Mile Metals. It trades about -0.02 of its potential returns per unit of risk. Nine Mile Metals is currently generating about -0.38 per unit of risk. If you would invest 89.00 in Augusta Gold Corp on November 4, 2024 and sell it today you would lose (6.00) from holding Augusta Gold Corp or give up 6.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Augusta Gold Corp vs. Nine Mile Metals
Performance |
| Timeline |
| Augusta Gold Corp |
| Nine Mile Metals |
Augusta Gold and Nine Mile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Augusta Gold and Nine Mile
The main advantage of trading using opposite Augusta Gold and Nine Mile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Augusta Gold position performs unexpectedly, Nine Mile 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 Nine Mile will offset losses from the drop in Nine Mile's long position.| Augusta Gold vs. Newcore Gold | Augusta Gold vs. Cerrado Gold | Augusta Gold vs. Palamina Corp | Augusta Gold vs. Gold Springs Resource |
| Nine Mile vs. Endurance Gold | Nine Mile vs. Red Pine Exploration | Nine Mile vs. Altamira Gold Corp | Nine Mile vs. Grande Portage Resources |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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