Correlation Between NYSE Composite and Augusta Gold
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Augusta Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Augusta Gold Corp, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Augusta Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Augusta Gold.
Diversification Opportunities for NYSE Composite and Augusta Gold
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and Augusta is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Augusta Gold go up and down completely randomly.
Pair Corralation between NYSE Composite and Augusta Gold
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.14 times more return on investment than Augusta Gold. However, NYSE Composite is 7.05 times less risky than Augusta Gold. It trades about 0.08 of its potential returns per unit of risk. Augusta Gold Corp is currently generating about 0.01 per unit of risk. If you would invest 1,556,254 in NYSE Composite on September 3, 2024 and sell it today you would earn a total of 470,950 from holding NYSE Composite or generate 30.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Augusta Gold Corp
Performance |
| Timeline |
NYSE Composite and Augusta Gold Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Augusta Gold Corp
Pair trading matchups for Augusta Gold
Pair Trading with NYSE Composite and Augusta Gold
The main advantage of trading using opposite NYSE Composite and Augusta Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Lindblad Expeditions Holdings | NYSE Composite vs. LB Foster | NYSE Composite vs. HUTCHMED DRC | NYSE Composite vs. Bridgford Foods |
| Augusta Gold vs. Harmony Gold Mining | Augusta Gold vs. SPACE | Augusta Gold vs. T Rowe Price | Augusta Gold vs. Ampleforth |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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