Correlation Between 1911 Gold and Hycroft Mining

Can any of the company-specific risk be diversified away by investing in both 1911 Gold and Hycroft Mining 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 1911 Gold and Hycroft Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 1911 Gold Corp and Hycroft Mining Holding, you can compare the effects of market volatilities on 1911 Gold and Hycroft Mining 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 1911 Gold with a short position of Hycroft Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1911 Gold and Hycroft Mining.

Diversification Opportunities for 1911 Gold and Hycroft Mining

-0.61

Correlation Coefficient

1911 Gold  Hycroft Mining

Excellent diversification

The 3 months correlation between 1911 and Hycroft is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding 1911 Gold Corp and Hycroft Mining Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hycroft Mining Holding and 1911 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 1911 Gold Corp are associated (or correlated) with Hycroft Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hycroft Mining Holding has no effect on the direction of 1911 Gold i.e., 1911 Gold and Hycroft Mining go up and down completely randomly.

Pair Corralation between 1911 Gold and Hycroft Mining

Assuming the 90 days horizon 1911 Gold Corp is expected to generate 0.35 times more return on investment than Hycroft Mining. However, 1911 Gold Corp is 2.85 times less risky than Hycroft Mining. It trades about 0.14 of its potential returns per unit of risk. Hycroft Mining Holding is currently generating about 0.01 per unit of risk. If you would invest  11.00  in 1911 Gold Corp on December 21, 2024 and sell it today you would earn a total of  6.00  from holding 1911 Gold Corp or generate 54.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.33%
Values	Daily Returns

1911 Gold Corp  vs.  Hycroft Mining Holding

1911 Gold Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in 1911 Gold Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental drivers, 1911 Gold reported solid returns over the last few months and may actually be approaching a breakup point.

Hycroft Mining Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hycroft Mining Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly conflicting fundamental indicators, Hycroft Mining may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with 1911 Gold and Hycroft Mining

The main advantage of trading using opposite 1911 Gold and Hycroft Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1911 Gold position performs unexpectedly, Hycroft Mining 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 Hycroft Mining will offset losses from the drop in Hycroft Mining's long position.

The idea behind 1911 Gold Corp and Hycroft Mining Holding 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.