Correlation Between Flinders Resources and Minaurum Gold
Can any of the company-specific risk be diversified away by investing in both Flinders Resources and Minaurum 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 Flinders Resources and Minaurum Gold 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 Minaurum Gold, you can compare the effects of market volatilities on Flinders Resources and Minaurum 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 Flinders Resources with a short position of Minaurum Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flinders Resources and Minaurum Gold.
Diversification Opportunities for Flinders Resources and Minaurum Gold
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Flinders and Minaurum is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Flinders Resources Limited and Minaurum Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minaurum 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 Minaurum Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minaurum Gold has no effect on the direction of Flinders Resources i.e., Flinders Resources and Minaurum Gold go up and down completely randomly.
Pair Corralation between Flinders Resources and Minaurum Gold
Assuming the 90 days horizon Flinders Resources Limited is expected to generate 0.96 times more return on investment than Minaurum Gold. However, Flinders Resources Limited is 1.05 times less risky than Minaurum Gold. It trades about 0.19 of its potential returns per unit of risk. Minaurum Gold is currently generating about -0.04 per unit of risk. If you would invest 408.00 in Flinders Resources Limited on November 3, 2024 and sell it today you would earn a total of 162.00 from holding Flinders Resources Limited or generate 39.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flinders Resources Limited vs. Minaurum Gold
Performance |
| Timeline |
| Flinders Resources |
| Minaurum Gold |
Flinders Resources and Minaurum Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flinders Resources and Minaurum Gold
The main advantage of trading using opposite Flinders Resources and Minaurum Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flinders Resources position performs unexpectedly, Minaurum 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 Minaurum Gold will offset losses from the drop in Minaurum Gold's long position.| Flinders Resources vs. IAMGold | Flinders Resources vs. Eldorado Gold Corp | Flinders Resources vs. Alamos Gold | Flinders Resources vs. NovaGold Resources |
| Minaurum Gold vs. Defiance Silver Corp | Minaurum Gold vs. Altiplano Metals | Minaurum Gold vs. Independence Gold Corp | Minaurum Gold vs. Galway Metals |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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