Correlation Between Equinox Gold and Fury Gold
Can any of the company-specific risk be diversified away by investing in both Equinox Gold and Fury Gold 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 Equinox Gold and Fury Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equinox Gold Corp and Fury Gold Mines, you can compare the effects of market volatilities on Equinox Gold and Fury Gold 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 Equinox Gold with a short position of Fury Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equinox Gold and Fury Gold.
Diversification Opportunities for Equinox Gold and Fury Gold
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Equinox and Fury is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Equinox Gold Corp and Fury Gold Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fury Gold Mines and Equinox 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 Equinox Gold Corp are associated (or correlated) with Fury Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fury Gold Mines has no effect on the direction of Equinox Gold i.e., Equinox Gold and Fury Gold go up and down completely randomly.
Pair Corralation between Equinox Gold and Fury Gold
Considering the 90-day investment horizon Equinox Gold Corp is expected to generate 0.91 times more return on investment than Fury Gold. However, Equinox Gold Corp is 1.1 times less risky than Fury Gold. It trades about -0.02 of its potential returns per unit of risk. Fury Gold Mines is currently generating about -0.13 per unit of risk. If you would invest 571.00 in Equinox Gold Corp on August 28, 2024 and sell it today you would lose (17.00) from holding Equinox Gold Corp or give up 2.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Equinox Gold Corp vs. Fury Gold Mines
Performance |
| Timeline |
| Equinox Gold Corp |
| Fury Gold Mines |
Equinox Gold and Fury Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equinox Gold and Fury Gold
The main advantage of trading using opposite Equinox Gold and Fury Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equinox Gold position performs unexpectedly, Fury Gold 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 Fury Gold will offset losses from the drop in Fury Gold's long position.| Equinox Gold vs. Coeur Mining | Equinox Gold vs. B2Gold Corp | Equinox Gold vs. Sandstorm Gold Ltd | Equinox Gold vs. Pan American Silver |
| Fury Gold vs. EMX Royalty Corp | Fury Gold vs. Western Copper and | Fury Gold vs. Nevada King Gold | Fury Gold vs. Aftermath Silver |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |