Correlation Between FireFox Gold and Black Tusk
Can any of the company-specific risk be diversified away by investing in both FireFox Gold and Black Tusk 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 FireFox Gold and Black Tusk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FireFox Gold Corp and Black Tusk Resources, you can compare the effects of market volatilities on FireFox Gold and Black Tusk 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 FireFox Gold with a short position of Black Tusk. Check out your portfolio center. Please also check ongoing floating volatility patterns of FireFox Gold and Black Tusk.
Diversification Opportunities for FireFox Gold and Black Tusk
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between FireFox and Black is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding FireFox Gold Corp and Black Tusk Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Black Tusk Resources and FireFox Gold 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 FireFox Gold Corp are associated (or correlated) with Black Tusk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Black Tusk Resources has no effect on the direction of FireFox Gold i.e., FireFox Gold and Black Tusk go up and down completely randomly.
Pair Corralation between FireFox Gold and Black Tusk
Assuming the 90 days horizon FireFox Gold is expected to generate 1353.99 times less return on investment than Black Tusk. But when comparing it to its historical volatility, FireFox Gold Corp is 44.88 times less risky than Black Tusk. It trades about 0.02 of its potential returns per unit of risk. Black Tusk Resources is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 3.46 in Black Tusk Resources on August 29, 2024 and sell it today you would earn a total of 3.54 from holding Black Tusk Resources or generate 102.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.08% |
| Values | Daily Returns |
FireFox Gold Corp vs. Black Tusk Resources
Performance |
| Timeline |
| FireFox Gold Corp |
| Black Tusk Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Strong
FireFox Gold and Black Tusk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FireFox Gold and Black Tusk
The main advantage of trading using opposite FireFox Gold and Black Tusk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FireFox Gold position performs unexpectedly, Black Tusk 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 Black Tusk will offset losses from the drop in Black Tusk's long position.| FireFox Gold vs. Aurion Resources | FireFox Gold vs. Liberty Gold Corp | FireFox Gold vs. Orezone Gold Corp | FireFox Gold vs. Fortuna Silver Mines |
| Black Tusk vs. Palamina Corp | Black Tusk vs. Gold Springs Resource | Black Tusk vs. BTU Metals Corp | Black Tusk vs. Norsemont Mining |
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.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |