Correlation Between Austin Gold and Gold Resource
Can any of the company-specific risk be diversified away by investing in both Austin Gold and Gold Resource 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 Gold Resource 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 Gold Resource, you can compare the effects of market volatilities on Austin Gold and Gold Resource 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 Gold Resource. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austin Gold and Gold Resource.
Diversification Opportunities for Austin Gold and Gold Resource
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Austin and Gold is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Austin Gold Corp and Gold Resource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Resource 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 Gold Resource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Resource has no effect on the direction of Austin Gold i.e., Austin Gold and Gold Resource go up and down completely randomly.
Pair Corralation between Austin Gold and Gold Resource
Given the investment horizon of 90 days Austin Gold Corp is expected to generate 0.98 times more return on investment than Gold Resource. However, Austin Gold Corp is 1.02 times less risky than Gold Resource. It trades about 0.11 of its potential returns per unit of risk. Gold Resource is currently generating about -0.05 per unit of risk. If you would invest 93.00 in Austin Gold Corp on September 1, 2024 and sell it today you would earn a total of 102.00 from holding Austin Gold Corp or generate 109.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austin Gold Corp vs. Gold Resource
Performance |
| Timeline |
| Austin Gold Corp |
| Gold Resource |
Austin Gold and Gold Resource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austin Gold and Gold Resource
The main advantage of trading using opposite Austin Gold and Gold Resource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austin Gold position performs unexpectedly, Gold Resource 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 Gold Resource will offset losses from the drop in Gold Resource'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 |
| Gold Resource vs. IAMGold | Gold Resource vs. Eldorado Gold Corp | Gold Resource vs. Coeur Mining | Gold Resource vs. Alamos Gold |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |