Correlation Between Argus Metals and NovaGold Resources
Can any of the company-specific risk be diversified away by investing in both Argus Metals and NovaGold Resources 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 Argus Metals and NovaGold Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argus Metals Corp and NovaGold Resources, you can compare the effects of market volatilities on Argus Metals and NovaGold Resources 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 Argus Metals with a short position of NovaGold Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argus Metals and NovaGold Resources.
Diversification Opportunities for Argus Metals and NovaGold Resources
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Argus and NovaGold is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Argus Metals Corp and NovaGold Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NovaGold Resources and Argus Metals 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 Argus Metals Corp are associated (or correlated) with NovaGold Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NovaGold Resources has no effect on the direction of Argus Metals i.e., Argus Metals and NovaGold Resources go up and down completely randomly.
Pair Corralation between Argus Metals and NovaGold Resources
Assuming the 90 days horizon Argus Metals Corp is expected to under-perform the NovaGold Resources. In addition to that, Argus Metals is 1.95 times more volatile than NovaGold Resources. It trades about -0.01 of its total potential returns per unit of risk. NovaGold Resources is currently generating about 0.17 per unit of volatility. If you would invest 838.00 in NovaGold Resources on August 18, 2025 and sell it today you would earn a total of 374.00 from holding NovaGold Resources or generate 44.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Argus Metals Corp vs. NovaGold Resources
Performance |
| Timeline |
| Argus Metals Corp |
| NovaGold Resources |
Argus Metals and NovaGold Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argus Metals and NovaGold Resources
The main advantage of trading using opposite Argus Metals and NovaGold Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argus Metals position performs unexpectedly, NovaGold Resources 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 NovaGold Resources will offset losses from the drop in NovaGold Resources' long position.| Argus Metals vs. Vizsla Silver Corp | Argus Metals vs. Element Fleet Management | Argus Metals vs. Americas Silver Corp | Argus Metals vs. Capstone Mining Corp |
| NovaGold Resources vs. K92 Mining | NovaGold Resources vs. Orla Mining | NovaGold Resources vs. Westgold Resources Limited | NovaGold Resources vs. Torex Gold Resources |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |