Correlation Between Austin Gold and Smart Digital

Can any of the company-specific risk be diversified away by investing in both Austin Gold and Smart Digital 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 Smart Digital 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 Smart Digital Group, you can compare the effects of market volatilities on Austin Gold and Smart Digital 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 Smart Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austin Gold and Smart Digital.

Diversification Opportunities for Austin Gold and Smart Digital

-0.47

Correlation Coefficient

Austin Gold  Smart Digital

Very good diversification

The 3 months correlation between Austin and Smart is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Austin Gold Corp and Smart Digital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smart Digital Group 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 Smart Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smart Digital Group has no effect on the direction of Austin Gold i.e., Austin Gold and Smart Digital go up and down completely randomly.

Pair Corralation between Austin Gold and Smart Digital

Given the investment horizon of 90 days Austin Gold is expected to generate 30.97 times less return on investment than Smart Digital. But when comparing it to its historical volatility, Austin Gold Corp is 3.56 times less risky than Smart Digital. It trades about 0.02 of its potential returns per unit of risk. Smart Digital Group is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  472.00  in Smart Digital Group on May 19, 2025 and sell it today you would earn a total of  769.00  from holding Smart Digital Group or generate 162.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Austin Gold Corp  vs.  Smart Digital Group

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.

Smart Digital Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Smart Digital Group are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very weak fundamental indicators, Smart Digital displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Austin Gold and Smart Digital

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

The idea behind Austin Gold Corp and Smart Digital Group 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.