Correlation Between Hycroft Mining and Austin Gold

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

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

Diversification Opportunities for Hycroft Mining and Austin Gold

-0.19

Correlation Coefficient

Hycroft Mining  Austin Gold

Good diversification

The 3 months correlation between Hycroft and Austin is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Hycroft Mining Holding and Austin Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Austin Gold Corp and Hycroft Mining 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 Hycroft Mining Holding are associated (or correlated) with Austin Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Austin Gold Corp has no effect on the direction of Hycroft Mining i.e., Hycroft Mining and Austin Gold go up and down completely randomly.

Pair Corralation between Hycroft Mining and Austin Gold

Assuming the 90 days horizon Hycroft Mining Holding is expected to under-perform the Austin Gold. In addition to that, Hycroft Mining is 3.25 times more volatile than Austin Gold Corp. It trades about -0.02 of its total potential returns per unit of risk. Austin Gold Corp is currently generating about 0.05 per unit of volatility. If you would invest  127.00  in Austin Gold Corp on December 29, 2024 and sell it today you would earn a total of  11.00  from holding Austin Gold Corp or generate 8.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Hycroft Mining Holding  vs.  Austin Gold Corp

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 conflicting performance in the last few months, the Stock's fundamental indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Austin Gold Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Austin Gold Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Austin Gold unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hycroft Mining and Austin Gold

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

The idea behind Hycroft Mining Holding and Austin Gold 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 Global Correlations module to find global opportunities by holding instruments from different markets.