Correlation Between GOLDGROUP MINING and AMAG Austria

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

By analyzing existing cross correlation between GOLDGROUP MINING INC and AMAG Austria Metall, you can compare the effects of market volatilities on GOLDGROUP MINING and AMAG Austria 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 GOLDGROUP MINING with a short position of AMAG Austria. Check out your portfolio center. Please also check ongoing floating volatility patterns of GOLDGROUP MINING and AMAG Austria.

Diversification Opportunities for GOLDGROUP MINING and AMAG Austria

0.16

Correlation Coefficient

GOLDGROUP MINING  AMAG Austria

Average diversification

The 3 months correlation between GOLDGROUP and AMAG is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding GOLDGROUP MINING INC and AMAG Austria Metall in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMAG Austria Metall and GOLDGROUP 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 GOLDGROUP MINING INC are associated (or correlated) with AMAG Austria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMAG Austria Metall has no effect on the direction of GOLDGROUP MINING i.e., GOLDGROUP MINING and AMAG Austria go up and down completely randomly.

Pair Corralation between GOLDGROUP MINING and AMAG Austria

Assuming the 90 days trading horizon GOLDGROUP MINING INC is expected to generate 2.18 times more return on investment than AMAG Austria. However, GOLDGROUP MINING is 2.18 times more volatile than AMAG Austria Metall. It trades about 0.01 of its potential returns per unit of risk. AMAG Austria Metall is currently generating about -0.01 per unit of risk. If you would invest  63.00  in GOLDGROUP MINING INC on April 24, 2025 and sell it today you would lose (1.00) from holding GOLDGROUP MINING INC or give up 1.59% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

GOLDGROUP MINING INC  vs.  AMAG Austria Metall

GOLDGROUP MINING INC

Risk-Adjusted Performance

Very Weak

Over the last 90 days GOLDGROUP MINING INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, GOLDGROUP MINING is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

AMAG Austria Metall

Risk-Adjusted Performance

Very Weak

Over the last 90 days AMAG Austria Metall has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, AMAG Austria is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with GOLDGROUP MINING and AMAG Austria

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

The idea behind GOLDGROUP MINING INC and AMAG Austria Metall 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .