Correlation Between Artemis Gold and New Gold

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Can any of the company-specific risk be diversified away by investing in both Artemis Gold and New 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 Artemis Gold and New Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artemis Gold and New Gold, you can compare the effects of market volatilities on Artemis Gold and New 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 Artemis Gold with a short position of New Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artemis Gold and New Gold.

Diversification Opportunities for Artemis Gold and New Gold

0.94
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Artemis and New is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Artemis Gold and New Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Gold and Artemis 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 Artemis Gold are associated (or correlated) with New Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Gold has no effect on the direction of Artemis Gold i.e., Artemis Gold and New Gold go up and down completely randomly.

Pair Corralation between Artemis Gold and New Gold

Assuming the 90 days trading horizon Artemis Gold is expected to generate 1.42 times less return on investment than New Gold. But when comparing it to its historical volatility, Artemis Gold is 1.16 times less risky than New Gold. It trades about 0.16 of its potential returns per unit of risk. New Gold is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  693.00  in New Gold on August 13, 2025 and sell it today you would earn a total of  306.00  from holding New Gold or generate 44.16% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Artemis Gold  vs.  New Gold

 Performance 
       Timeline  
Artemis Gold 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Artemis Gold are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Artemis Gold showed solid returns over the last few months and may actually be approaching a breakup point.
New Gold 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in New Gold are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, New Gold displayed solid returns over the last few months and may actually be approaching a breakup point.

Artemis Gold and New Gold Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Artemis Gold and New Gold

The main advantage of trading using opposite Artemis Gold and New Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artemis Gold position performs unexpectedly, New 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 New Gold will offset losses from the drop in New Gold's long position.
The idea behind Artemis Gold and New Gold 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.
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 Commodity Directory module to find actively traded commodities issued by global exchanges.

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