Correlation Between Austin Gold and Hongli Group
Can any of the company-specific risk be diversified away by investing in both Austin Gold and Hongli Group 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 Hongli Group 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 Hongli Group Ordinary, you can compare the effects of market volatilities on Austin Gold and Hongli Group 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 Hongli Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austin Gold and Hongli Group.
Diversification Opportunities for Austin Gold and Hongli Group
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Austin and Hongli is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Austin Gold Corp and Hongli Group Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hongli Group Ordinary 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 Hongli Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hongli Group Ordinary has no effect on the direction of Austin Gold i.e., Austin Gold and Hongli Group go up and down completely randomly.
Pair Corralation between Austin Gold and Hongli Group
Given the investment horizon of 90 days Austin Gold Corp is expected to generate 0.94 times more return on investment than Hongli Group. However, Austin Gold Corp is 1.07 times less risky than Hongli Group. It trades about 0.08 of its potential returns per unit of risk. Hongli Group Ordinary is currently generating about 0.02 per unit of risk. If you would invest 83.00 in Austin Gold Corp on September 2, 2024 and sell it today you would earn a total of 112.00 from holding Austin Gold Corp or generate 134.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austin Gold Corp vs. Hongli Group Ordinary
Performance |
| Timeline |
| Austin Gold Corp |
| Hongli Group Ordinary |
Austin Gold and Hongli Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austin Gold and Hongli Group
The main advantage of trading using opposite Austin Gold and Hongli Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austin Gold position performs unexpectedly, Hongli Group 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 Hongli Group will offset losses from the drop in Hongli Group'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 |
| Hongli Group vs. Integral Ad Science | Hongli Group vs. United Homes Group | Hongli Group vs. WiMi Hologram Cloud | Hongli Group vs. JBG SMITH Properties |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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