Correlation Between Dakota Gold and Hycroft Mining

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

Diversification Opportunities for Dakota Gold and Hycroft Mining

0.0

Correlation Coefficient

Dakota Gold  Hycroft Mining

Pay attention - limited upside

The 3 months correlation between Dakota and Hycroft is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dakota Gold Corp and Hycroft Mining Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hycroft Mining Holding 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 Hycroft Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hycroft Mining Holding has no effect on the direction of Dakota Gold i.e., Dakota Gold and Hycroft Mining go up and down completely randomly.

Pair Corralation between Dakota Gold and Hycroft Mining

If you would invest  277.00  in Dakota Gold Corp on May 7, 2025 and sell it today you would earn a total of  99.00  from holding Dakota Gold Corp or generate 35.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Dakota Gold Corp  vs.  Hycroft Mining Holding

Dakota Gold Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Dakota Gold Corp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal fundamental indicators, Dakota Gold exhibited solid returns over the last few months and may actually be approaching a breakup point.

Hycroft Mining Holding

Risk-Adjusted Performance

Weakest

Over the last 90 days Hycroft Mining Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, Hycroft Mining is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Dakota Gold and Hycroft Mining

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

The idea behind Dakota Gold Corp and Hycroft Mining Holding 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 Commodity Directory module to find actively traded commodities issued by global exchanges.