Correlation Between Puma Exploration and Augusta Gold
Can any of the company-specific risk be diversified away by investing in both Puma Exploration 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 Puma Exploration and Augusta Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puma Exploration and Augusta Gold Corp, you can compare the effects of market volatilities on Puma Exploration 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 Puma Exploration with a short position of Augusta Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puma Exploration and Augusta Gold.
Diversification Opportunities for Puma Exploration and Augusta Gold
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Puma and Augusta is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Puma Exploration 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 Puma Exploration 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 Puma Exploration 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 Puma Exploration i.e., Puma Exploration and Augusta Gold go up and down completely randomly.
Pair Corralation between Puma Exploration and Augusta Gold
Assuming the 90 days horizon Puma Exploration is expected to generate 1.95 times less return on investment than Augusta Gold. In addition to that, Puma Exploration is 1.24 times more volatile than Augusta Gold Corp. It trades about 0.04 of its total potential returns per unit of risk. Augusta Gold Corp is currently generating about 0.1 per unit of volatility. If you would invest 67.00 in Augusta Gold Corp on October 26, 2024 and sell it today you would earn a total of 19.00 from holding Augusta Gold Corp or generate 28.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Puma Exploration vs. Augusta Gold Corp
Performance |
| Timeline |
| Puma Exploration |
| Augusta Gold Corp |
Puma Exploration and Augusta Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puma Exploration and Augusta Gold
The main advantage of trading using opposite Puma Exploration and Augusta Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puma Exploration 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.| Puma Exploration vs. Sixty North Gold | Puma Exploration vs. Red Pine Exploration | Puma Exploration vs. Grande Portage Resources | Puma Exploration vs. Altamira Gold Corp |
| 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |