Correlation Between Gold Royalty and Artemis Gold

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

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

Diversification Opportunities for Gold Royalty and Artemis Gold

0.2

Correlation Coefficient

Gold Royalty  Artemis Gold

Modest diversification

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

Pair Corralation between Gold Royalty and Artemis Gold

Given the investment horizon of 90 days Gold Royalty Corp is expected to under-perform the Artemis Gold. In addition to that, Gold Royalty is 1.03 times more volatile than Artemis Gold. It trades about -0.03 of its total potential returns per unit of risk. Artemis Gold is currently generating about 0.09 per unit of volatility. 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

Gold Royalty Corp  vs.  Artemis Gold

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 weak 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.

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.

Pair Trading with Gold Royalty and Artemis Gold

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

The idea behind Gold Royalty Corp and Artemis Gold 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.