Correlation Between US Gold and Sixty North
Can any of the company-specific risk be diversified away by investing in both US Gold and Sixty North 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 US Gold and Sixty North into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Gold Corp and Sixty North Gold, you can compare the effects of market volatilities on US Gold and Sixty North 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 US Gold with a short position of Sixty North. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Gold and Sixty North.
Diversification Opportunities for US Gold and Sixty North
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between USAU and Sixty is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding US Gold Corp and Sixty North Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixty North Gold and US 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 US Gold Corp are associated (or correlated) with Sixty North. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixty North Gold has no effect on the direction of US Gold i.e., US Gold and Sixty North go up and down completely randomly.
Pair Corralation between US Gold and Sixty North
Given the investment horizon of 90 days US Gold is expected to generate 6.98 times less return on investment than Sixty North. But when comparing it to its historical volatility, US Gold Corp is 2.93 times less risky than Sixty North. It trades about 0.06 of its potential returns per unit of risk. Sixty North Gold is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 5.00 in Sixty North Gold on October 21, 2024 and sell it today you would earn a total of 1.24 from holding Sixty North Gold or generate 24.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
US Gold Corp vs. Sixty North Gold
Performance |
| Timeline |
| US Gold Corp |
| Sixty North Gold |
US Gold and Sixty North Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Gold and Sixty North
The main advantage of trading using opposite US Gold and Sixty North positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Gold position performs unexpectedly, Sixty North 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 Sixty North will offset losses from the drop in Sixty North's long position.| US Gold vs. Labrador Gold Corp | US Gold vs. Aurion Resources | US Gold vs. Puma Exploration | US Gold vs. Golden Star Resource |
| Sixty North vs. Puma Exploration | Sixty North vs. Red Pine Exploration | Sixty North vs. Grande Portage Resources | Sixty North vs. Altamira Gold Corp |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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