Correlation Between Artemis Gold and Gold Royalty

Can any of the company-specific risk be diversified away by investing in both Artemis Gold and Gold Royalty 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 Artemis Gold and Gold Royalty into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Artemis Gold and Gold Royalty Corp, you can compare the effects of market volatilities on Artemis Gold and Gold Royalty 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 Artemis Gold with a short position of Gold Royalty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artemis Gold and Gold Royalty.

Diversification Opportunities for Artemis Gold and Gold Royalty

0.2

Correlation Coefficient

Artemis Gold  Gold Royalty

Modest diversification

The 3 months correlation between Artemis and Gold is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Artemis Gold and Gold Royalty Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Royalty Corp and Artemis 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 Artemis Gold are associated (or correlated) with Gold Royalty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Royalty Corp has no effect on the direction of Artemis Gold i.e., Artemis Gold and Gold Royalty go up and down completely randomly.

Pair Corralation between Artemis Gold and Gold Royalty

Assuming the 90 days trading horizon Artemis Gold is expected to generate 0.97 times more return on investment than Gold Royalty. However, Artemis Gold is 1.03 times less risky than Gold Royalty. It trades about 0.09 of its potential returns per unit of risk. Gold Royalty Corp is currently generating about -0.03 per unit of risk. If you would invest  482.00  in Artemis Gold on October 3, 2024 and sell it today you would earn a total of  893.00  from holding Artemis Gold or generate 185.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	99.79%
Values	Daily Returns

Artemis Gold  vs.  Gold Royalty Corp

Artemis Gold

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Artemis Gold are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Artemis Gold may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Gold Royalty Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gold Royalty Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Artemis Gold and Gold Royalty

The main advantage of trading using opposite Artemis Gold and Gold Royalty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artemis Gold position performs unexpectedly, Gold Royalty 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 Gold Royalty will offset losses from the drop in Gold Royalty's long position.

The idea behind Artemis Gold and Gold Royalty Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.