Correlation Between Lavras Gold and Augusta Gold
Can any of the company-specific risk be diversified away by investing in both Lavras 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 Lavras 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 Lavras Gold Corp and Augusta Gold Corp, you can compare the effects of market volatilities on Lavras 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 Lavras Gold with a short position of Augusta Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lavras Gold and Augusta Gold.
Diversification Opportunities for Lavras Gold and Augusta Gold
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lavras and Augusta is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Lavras 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 Lavras 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 Lavras 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 Lavras Gold i.e., Lavras Gold and Augusta Gold go up and down completely randomly.
Pair Corralation between Lavras Gold and Augusta Gold
Assuming the 90 days horizon Lavras Gold Corp is expected to under-perform the Augusta Gold. But the otc stock apears to be less risky and, when comparing its historical volatility, Lavras Gold Corp is 1.23 times less risky than Augusta Gold. The otc stock trades about -0.01 of its potential returns per unit of risk. The Augusta Gold Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 80.00 in Augusta Gold Corp on November 27, 2024 and sell it today you would earn a total of 5.00 from holding Augusta Gold Corp or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lavras Gold Corp vs. Augusta Gold Corp
Performance |
| Timeline |
| Lavras Gold Corp |
| Augusta Gold Corp |
Lavras Gold and Augusta Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lavras Gold and Augusta Gold
The main advantage of trading using opposite Lavras Gold and Augusta Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lavras 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.| Lavras Gold vs. TRU Precious Metals | Lavras Gold vs. Orefinders Resources | Lavras Gold vs. North Peak Resources | Lavras Gold vs. Nine Mile Metals |
| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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