Correlation Between Augusta Gold and Nukkleus

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

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

Diversification Opportunities for Augusta Gold and Nukkleus

0.35

Correlation Coefficient

Augusta Gold  Nukkleus

Weak diversification

The 3 months correlation between Augusta and Nukkleus is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Augusta Gold Corp and Nukkleus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nukkleus and Augusta 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 Augusta Gold Corp are associated (or correlated) with Nukkleus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nukkleus has no effect on the direction of Augusta Gold i.e., Augusta Gold and Nukkleus go up and down completely randomly.

Pair Corralation between Augusta Gold and Nukkleus

Given the investment horizon of 90 days Augusta Gold Corp is expected to generate 0.49 times more return on investment than Nukkleus. However, Augusta Gold Corp is 2.05 times less risky than Nukkleus. It trades about -0.01 of its potential returns per unit of risk. Nukkleus is currently generating about -0.08 per unit of risk. If you would invest  97.00  in Augusta Gold Corp on December 20, 2024 and sell it today you would lose (12.00) from holding Augusta Gold Corp or give up 12.37% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Augusta Gold Corp  vs.  Nukkleus

Augusta Gold Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Augusta Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Augusta Gold is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Nukkleus

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nukkleus has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Augusta Gold and Nukkleus

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

The idea behind Augusta Gold Corp and Nukkleus 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.