Correlation Between Faraday Copper and Midnight Sun
Can any of the company-specific risk be diversified away by investing in both Faraday Copper and Midnight Sun 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 Faraday Copper and Midnight Sun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Faraday Copper Corp and Midnight Sun Mining, you can compare the effects of market volatilities on Faraday Copper and Midnight Sun 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 Faraday Copper with a short position of Midnight Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Faraday Copper and Midnight Sun.
Diversification Opportunities for Faraday Copper and Midnight Sun
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Faraday and Midnight is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Faraday Copper Corp and Midnight Sun Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Midnight Sun Mining and Faraday Copper 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 Faraday Copper Corp are associated (or correlated) with Midnight Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Midnight Sun Mining has no effect on the direction of Faraday Copper i.e., Faraday Copper and Midnight Sun go up and down completely randomly.
Pair Corralation between Faraday Copper and Midnight Sun
Assuming the 90 days trading horizon Faraday Copper is expected to generate 3.79 times less return on investment than Midnight Sun. But when comparing it to its historical volatility, Faraday Copper Corp is 3.03 times less risky than Midnight Sun. It trades about 0.11 of its potential returns per unit of risk. Midnight Sun Mining is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 54.00 in Midnight Sun Mining on November 28, 2024 and sell it today you would earn a total of 10.00 from holding Midnight Sun Mining or generate 18.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Faraday Copper Corp vs. Midnight Sun Mining
Performance |
| Timeline |
| Faraday Copper Corp |
| Midnight Sun Mining |
Faraday Copper and Midnight Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Faraday Copper and Midnight Sun
The main advantage of trading using opposite Faraday Copper and Midnight Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Faraday Copper position performs unexpectedly, Midnight Sun 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 Midnight Sun will offset losses from the drop in Midnight Sun's long position.| Faraday Copper vs. Arizona Sonoran Copper | Faraday Copper vs. ATEX Resources | Faraday Copper vs. Marimaca Copper Corp |
| Midnight Sun vs. New Destiny Mining | Midnight Sun vs. Magnum Goldcorp | Midnight Sun vs. Asiabasemetals | Midnight Sun vs. Lupaka Gold 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Transaction History View history of all your transactions and understand their impact on performance |