Correlation Between Austin Gold and Cambridge Capital
Can any of the company-specific risk be diversified away by investing in both Austin Gold and Cambridge Capital 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 Austin Gold and Cambridge Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Austin Gold Corp and Cambridge Capital Holdings, you can compare the effects of market volatilities on Austin Gold and Cambridge Capital 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 Austin Gold with a short position of Cambridge Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austin Gold and Cambridge Capital.
Diversification Opportunities for Austin Gold and Cambridge Capital
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Austin and Cambridge is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Austin Gold Corp and Cambridge Capital Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambridge Capital and Austin 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 Austin Gold Corp are associated (or correlated) with Cambridge Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambridge Capital has no effect on the direction of Austin Gold i.e., Austin Gold and Cambridge Capital go up and down completely randomly.
Pair Corralation between Austin Gold and Cambridge Capital
Given the investment horizon of 90 days Austin Gold is expected to generate 1.07 times less return on investment than Cambridge Capital. In addition to that, Austin Gold is 1.73 times more volatile than Cambridge Capital Holdings. It trades about 0.12 of its total potential returns per unit of risk. Cambridge Capital Holdings is currently generating about 0.21 per unit of volatility. If you would invest 15.00 in Cambridge Capital Holdings on November 28, 2024 and sell it today you would earn a total of 2.00 from holding Cambridge Capital Holdings or generate 13.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Austin Gold Corp vs. Cambridge Capital Holdings
Performance |
| Timeline |
| Austin Gold Corp |
| Cambridge Capital |
Austin Gold and Cambridge Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austin Gold and Cambridge Capital
The main advantage of trading using opposite Austin Gold and Cambridge Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austin Gold position performs unexpectedly, Cambridge Capital 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 Cambridge Capital will offset losses from the drop in Cambridge Capital's long position.| Austin Gold vs. Paramount Gold Nevada | Austin Gold vs. Liberty Gold Corp | Austin Gold vs. GoldMining | Austin Gold vs. International Tower Hill |
| Cambridge Capital vs. Edison Cobalt Corp | Cambridge Capital vs. Champion Bear Resources | Cambridge Capital vs. Avarone Metals | Cambridge Capital vs. Adriatic Metals PLC |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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