Correlation Between Dakota Gold and New Found
Can any of the company-specific risk be diversified away by investing in both Dakota Gold and New Found 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 Dakota Gold and New Found into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dakota Gold Corp and New Found Gold, you can compare the effects of market volatilities on Dakota Gold and New Found 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 Dakota Gold with a short position of New Found. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dakota Gold and New Found.
Diversification Opportunities for Dakota Gold and New Found
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dakota and New is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Dakota Gold Corp and New Found Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Found Gold and Dakota 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 Dakota Gold Corp are associated (or correlated) with New Found. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Found Gold has no effect on the direction of Dakota Gold i.e., Dakota Gold and New Found go up and down completely randomly.
Pair Corralation between Dakota Gold and New Found
Allowing for the 90-day total investment horizon Dakota Gold is expected to generate 5.42 times less return on investment than New Found. But when comparing it to its historical volatility, Dakota Gold Corp is 1.23 times less risky than New Found. It trades about 0.02 of its potential returns per unit of risk. New Found Gold is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 160.00 in New Found Gold on August 18, 2025 and sell it today you would earn a total of 46.00 from holding New Found Gold or generate 28.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dakota Gold Corp vs. New Found Gold
Performance |
| Timeline |
| Dakota Gold Corp |
| New Found Gold |
Dakota Gold and New Found Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dakota Gold and New Found
The main advantage of trading using opposite Dakota Gold and New Found positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dakota Gold position performs unexpectedly, New Found 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 Found will offset losses from the drop in New Found's long position.| Dakota Gold vs. New Found Gold | Dakota Gold vs. Osisko Development Corp | Dakota Gold vs. Idaho Strategic Resources | Dakota Gold vs. Nova Minerals Limited |
| New Found vs. Dakota Gold Corp | New Found vs. Osisko Development Corp | New Found vs. Idaho Strategic Resources | New Found vs. Nova Minerals Limited |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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