Correlation Between Austin Gold and CompoSecure

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

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

Diversification Opportunities for Austin Gold and CompoSecure

-0.13

Correlation Coefficient

Austin Gold  CompoSecure

Good diversification

The 3 months correlation between Austin and CompoSecure is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Austin Gold Corp and CompoSecure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompoSecure and Austin 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 Austin Gold Corp are associated (or correlated) with CompoSecure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CompoSecure has no effect on the direction of Austin Gold i.e., Austin Gold and CompoSecure go up and down completely randomly.

Pair Corralation between Austin Gold and CompoSecure

Given the investment horizon of 90 days Austin Gold is expected to generate 16.81 times less return on investment than CompoSecure. But when comparing it to its historical volatility, Austin Gold Corp is 1.59 times less risky than CompoSecure. It trades about 0.02 of its potential returns per unit of risk. CompoSecure is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  493.00  in CompoSecure on May 19, 2025 and sell it today you would earn a total of  560.00  from holding CompoSecure or generate 113.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Austin Gold Corp  vs.  CompoSecure

Austin Gold Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Austin Gold Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Austin Gold is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

CompoSecure

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CompoSecure are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, CompoSecure showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Austin Gold and CompoSecure

The main advantage of trading using opposite Austin Gold and CompoSecure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austin Gold position performs unexpectedly, CompoSecure 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 CompoSecure will offset losses from the drop in CompoSecure's long position.

The idea behind Austin Gold Corp and CompoSecure 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 Stocks Directory module to find actively traded stocks across global markets.