Correlation Between Flinders Resources and Outcrop Gold
Can any of the company-specific risk be diversified away by investing in both Flinders Resources and Outcrop 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 Outcrop 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 Outcrop Gold Corp, you can compare the effects of market volatilities on Flinders Resources and Outcrop 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 Outcrop Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flinders Resources and Outcrop Gold.
Diversification Opportunities for Flinders Resources and Outcrop Gold
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Flinders and Outcrop is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Flinders Resources Limited and Outcrop Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Outcrop Gold Corp 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 Outcrop Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Outcrop Gold Corp has no effect on the direction of Flinders Resources i.e., Flinders Resources and Outcrop Gold go up and down completely randomly.
Pair Corralation between Flinders Resources and Outcrop Gold
Assuming the 90 days horizon Flinders Resources Limited is expected to generate 0.79 times more return on investment than Outcrop Gold. However, Flinders Resources Limited is 1.27 times less risky than Outcrop Gold. It trades about 0.12 of its potential returns per unit of risk. Outcrop Gold Corp is currently generating about 0.05 per unit of risk. If you would invest 161.00 in Flinders Resources Limited on November 9, 2024 and sell it today you would earn a total of 384.00 from holding Flinders Resources Limited or generate 238.51% 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. Outcrop Gold Corp
Performance |
| Timeline |
| Flinders Resources |
| Outcrop Gold Corp |
Flinders Resources and Outcrop Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flinders Resources and Outcrop Gold
The main advantage of trading using opposite Flinders Resources and Outcrop Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flinders Resources position performs unexpectedly, Outcrop 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 Outcrop Gold will offset losses from the drop in Outcrop Gold's long position.| Flinders Resources vs. Centerra Gold | Flinders Resources vs. SSR Mining | Flinders Resources vs. Alamos Gold | Flinders Resources vs. Endeavour Mining Corp |
| Outcrop Gold vs. Strikepoint Gold | Outcrop Gold vs. Kootenay Silver | Outcrop Gold vs. Kore Mining | Outcrop Gold vs. Blackrock Silver Corp |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |