Correlation Between Flinders Resources and I 80
Can any of the company-specific risk be diversified away by investing in both Flinders Resources and I 80 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 Flinders Resources and I 80 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flinders Resources Limited and i 80 Gold Corp, you can compare the effects of market volatilities on Flinders Resources and I 80 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 Flinders Resources with a short position of I 80. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flinders Resources and I 80.
Diversification Opportunities for Flinders Resources and I 80
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Flinders and IAU is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Flinders Resources Limited and i 80 Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on i 80 Gold and Flinders Resources 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 Flinders Resources Limited are associated (or correlated) with I 80. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of i 80 Gold has no effect on the direction of Flinders Resources i.e., Flinders Resources and I 80 go up and down completely randomly.
Pair Corralation between Flinders Resources and I 80
Assuming the 90 days horizon Flinders Resources Limited is expected to generate 0.72 times more return on investment than I 80. However, Flinders Resources Limited is 1.4 times less risky than I 80. It trades about 0.32 of its potential returns per unit of risk. i 80 Gold Corp is currently generating about 0.03 per unit of risk. If you would invest 433.00 in Flinders Resources Limited on October 9, 2024 and sell it today you would earn a total of 139.00 from holding Flinders Resources Limited or generate 32.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flinders Resources Limited vs. i 80 Gold Corp
Performance |
| Timeline |
| Flinders Resources |
| i 80 Gold |
Flinders Resources and I 80 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flinders Resources and I 80
The main advantage of trading using opposite Flinders Resources and I 80 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flinders Resources position performs unexpectedly, I 80 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 I 80 will offset losses from the drop in I 80's long position.| Flinders Resources vs. Maple Leaf Foods | Flinders Resources vs. Arbor Metals Corp | Flinders Resources vs. Ramp Metals | Flinders Resources vs. Aya Gold Silver |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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