Correlation Between Getchell Gold and Augusta Gold
Can any of the company-specific risk be diversified away by investing in both Getchell Gold and Augusta Gold 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 Getchell Gold and Augusta Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getchell Gold Corp and Augusta Gold Corp, you can compare the effects of market volatilities on Getchell Gold and Augusta Gold 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 Getchell Gold with a short position of Augusta Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getchell Gold and Augusta Gold.
Diversification Opportunities for Getchell Gold and Augusta Gold
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Getchell and Augusta is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Getchell Gold Corp and Augusta Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Augusta Gold Corp and Getchell 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 Getchell Gold Corp are associated (or correlated) with Augusta Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Augusta Gold Corp has no effect on the direction of Getchell Gold i.e., Getchell Gold and Augusta Gold go up and down completely randomly.
Pair Corralation between Getchell Gold and Augusta Gold
Assuming the 90 days horizon Getchell Gold Corp is expected to generate 2.21 times more return on investment than Augusta Gold. However, Getchell Gold is 2.21 times more volatile than Augusta Gold Corp. It trades about 0.19 of its potential returns per unit of risk. Augusta Gold Corp is currently generating about 0.09 per unit of risk. If you would invest 13.00 in Getchell Gold Corp on November 27, 2024 and sell it today you would earn a total of 4.00 from holding Getchell Gold Corp or generate 30.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getchell Gold Corp vs. Augusta Gold Corp
Performance |
| Timeline |
| Getchell Gold Corp |
| Augusta Gold Corp |
Getchell Gold and Augusta Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getchell Gold and Augusta Gold
The main advantage of trading using opposite Getchell Gold and Augusta Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getchell Gold position performs unexpectedly, Augusta Gold 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 Augusta Gold will offset losses from the drop in Augusta Gold's long position.| Getchell Gold vs. White Gold Corp | Getchell Gold vs. Phenom Resources Corp | Getchell Gold vs. Revival Gold | Getchell Gold vs. Omai Gold Mines |
| Augusta Gold vs. Artemis Gold | Augusta Gold vs. North Peak Resources | Augusta Gold vs. Amex Exploration | Augusta Gold vs. Brixton Metals |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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