Correlation Between Kinross Gold and Augusta Gold

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

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

Diversification Opportunities for Kinross Gold and Augusta Gold

0.31

Correlation Coefficient

Kinross Gold  Augusta Gold

Weak diversification

The 3 months correlation between Kinross and Augusta is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Kinross Gold Corp 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 Kinross Gold 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 Kinross Gold Corp 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 Kinross Gold i.e., Kinross Gold and Augusta Gold go up and down completely randomly.

Pair Corralation between Kinross Gold and Augusta Gold

Given the investment horizon of 90 days Kinross Gold is expected to generate 4.34 times less return on investment than Augusta Gold. But when comparing it to its historical volatility, Kinross Gold Corp is 1.83 times less risky than Augusta Gold. It trades about 0.07 of its potential returns per unit of risk. Augusta Gold Corp is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  108.00  in Augusta Gold Corp on April 23, 2025 and sell it today you would earn a total of  58.00  from holding Augusta Gold Corp or generate 53.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Kinross Gold Corp  vs.  Augusta Gold Corp

Kinross Gold Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Kinross Gold Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Kinross Gold may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Augusta Gold Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Augusta Gold Corp are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Augusta Gold displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kinross Gold and Augusta Gold

The main advantage of trading using opposite Kinross Gold and Augusta Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinross Gold 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 Kinross Gold Corp 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.