Correlation Between Nine Mile and Augusta Gold
Can any of the company-specific risk be diversified away by investing in both Nine Mile 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 Nine Mile and Augusta Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nine Mile Metals and Augusta Gold Corp, you can compare the effects of market volatilities on Nine Mile 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 Nine Mile with a short position of Augusta Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nine Mile and Augusta Gold.
Diversification Opportunities for Nine Mile and Augusta Gold
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nine and Augusta is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Nine Mile Metals 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 Nine Mile 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 Nine Mile Metals 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 Nine Mile i.e., Nine Mile and Augusta Gold go up and down completely randomly.
Pair Corralation between Nine Mile and Augusta Gold
Assuming the 90 days horizon Nine Mile Metals is expected to under-perform the Augusta Gold. In addition to that, Nine Mile is 1.98 times more volatile than Augusta Gold Corp. It trades about -0.05 of its total potential returns per unit of risk. Augusta Gold Corp is currently generating about -0.04 per unit of volatility. If you would invest 102.00 in Augusta Gold Corp on December 3, 2024 and sell it today you would lose (21.00) from holding Augusta Gold Corp or give up 20.59% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 93.75% |
Values | Daily Returns |
Nine Mile Metals vs. Augusta Gold Corp
Performance |
Timeline |
Nine Mile Metals |
Augusta Gold Corp |
Nine Mile and Augusta Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nine Mile and Augusta Gold
The main advantage of trading using opposite Nine Mile and Augusta Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nine Mile 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.Nine Mile vs. Endurance Gold | Nine Mile vs. Red Pine Exploration | Nine Mile vs. Altamira Gold Corp | Nine Mile vs. Grande Portage Resources |
Augusta Gold vs. Artemis Gold | Augusta Gold vs. North Peak Resources | Augusta Gold vs. Amex Exploration | Augusta Gold vs. Brixton Metals |
Check out your portfolio center.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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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