Correlation Between US GoldMining and Digimarc
Can any of the company-specific risk be diversified away by investing in both US GoldMining and Digimarc 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 US GoldMining and Digimarc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US GoldMining Common and Digimarc, you can compare the effects of market volatilities on US GoldMining and Digimarc 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 US GoldMining with a short position of Digimarc. Check out your portfolio center. Please also check ongoing floating volatility patterns of US GoldMining and Digimarc.
Diversification Opportunities for US GoldMining and Digimarc
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between USGO and Digimarc is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding US GoldMining Common and Digimarc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digimarc and US GoldMining 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 US GoldMining Common are associated (or correlated) with Digimarc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digimarc has no effect on the direction of US GoldMining i.e., US GoldMining and Digimarc go up and down completely randomly.
Pair Corralation between US GoldMining and Digimarc
Given the investment horizon of 90 days US GoldMining Common is expected to generate 0.8 times more return on investment than Digimarc. However, US GoldMining Common is 1.25 times less risky than Digimarc. It trades about -0.01 of its potential returns per unit of risk. Digimarc is currently generating about -0.16 per unit of risk. If you would invest 950.00 in US GoldMining Common on May 29, 2025 and sell it today you would lose (48.00) from holding US GoldMining Common or give up 5.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
US GoldMining Common vs. Digimarc
Performance |
| Timeline |
| US GoldMining Common |
| Digimarc |
US GoldMining and Digimarc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US GoldMining and Digimarc
The main advantage of trading using opposite US GoldMining and Digimarc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US GoldMining position performs unexpectedly, Digimarc 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 Digimarc will offset losses from the drop in Digimarc's long position.| US GoldMining vs. Goldrich Mining Co | US GoldMining vs. Copperbank Resources Corp | US GoldMining vs. Amkor Technology | US GoldMining vs. Western Digital |
| Digimarc vs. CSP Inc | Digimarc vs. Digi International | Digimarc vs. Formula Systems 1985 | Digimarc vs. Grid Dynamics Holdings |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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