Correlation Between Nukkleus and Augusta Gold

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

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

Diversification Opportunities for Nukkleus and Augusta Gold

0.35

Correlation Coefficient

Nukkleus  Augusta Gold

Weak diversification

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

Pair Corralation between Nukkleus and Augusta Gold

Given the investment horizon of 90 days Nukkleus is expected to under-perform the Augusta Gold. In addition to that, Nukkleus is 2.05 times more volatile than Augusta Gold Corp. It trades about -0.08 of its total potential returns per unit of risk. Augusta Gold Corp is currently generating about -0.01 per unit of volatility. 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

Nukkleus  vs.  Augusta Gold Corp

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.

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.

Pair Trading with Nukkleus and Augusta Gold

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

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