Correlation Between ERAMET SA and Fury Gold
Can any of the company-specific risk be diversified away by investing in both ERAMET SA 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 ERAMET SA and Fury Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ERAMET SA and Fury Gold Mines, you can compare the effects of market volatilities on ERAMET SA 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 ERAMET SA with a short position of Fury Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of ERAMET SA and Fury Gold.
Diversification Opportunities for ERAMET SA and Fury Gold
Very good diversification
The 3 months correlation between ERAMET and Fury is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding ERAMET SA 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 ERAMET SA 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 ERAMET SA 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 ERAMET SA i.e., ERAMET SA and Fury Gold go up and down completely randomly.
Pair Corralation between ERAMET SA and Fury Gold
Assuming the 90 days horizon ERAMET SA is expected to under-perform the Fury Gold. In addition to that, ERAMET SA is 1.01 times more volatile than Fury Gold Mines. It trades about -0.02 of its total potential returns per unit of risk. Fury Gold Mines is currently generating about 0.01 per unit of volatility. If you would invest 46.00 in Fury Gold Mines on September 2, 2024 and sell it today you would lose (4.00) from holding Fury Gold Mines or give up 8.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 56.05% |
| Values | Daily Returns |
ERAMET SA vs. Fury Gold Mines
Performance |
| Timeline |
| ERAMET SA |
| Fury Gold Mines |
ERAMET SA and Fury Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ERAMET SA and Fury Gold
The main advantage of trading using opposite ERAMET SA and Fury Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ERAMET SA 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.| ERAMET SA vs. Iluka Resources Ltd | ERAMET SA vs. Giyani Metals Corp | ERAMET SA vs. IGO Limited | ERAMET SA vs. Grid Metals Corp |
| Fury Gold vs. Teck Resources Ltd | Fury Gold vs. Sigma Lithium Resources | Fury Gold vs. Vale SA ADR | Fury Gold vs. Sayona Mining Limited |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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