Correlation Between Falcon Gold and Cassiar Gold
Can any of the company-specific risk be diversified away by investing in both Falcon Gold and Cassiar 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 Falcon Gold and Cassiar Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Falcon Gold Corp and Cassiar Gold Corp, you can compare the effects of market volatilities on Falcon Gold and Cassiar 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 Falcon Gold with a short position of Cassiar Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Falcon Gold and Cassiar Gold.
Diversification Opportunities for Falcon Gold and Cassiar Gold
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Falcon and Cassiar is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Falcon Gold Corp and Cassiar Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cassiar Gold Corp and Falcon 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 Falcon Gold Corp are associated (or correlated) with Cassiar Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cassiar Gold Corp has no effect on the direction of Falcon Gold i.e., Falcon Gold and Cassiar Gold go up and down completely randomly.
Pair Corralation between Falcon Gold and Cassiar Gold
Assuming the 90 days horizon Falcon Gold Corp is expected to under-perform the Cassiar Gold. In addition to that, Falcon Gold is 2.08 times more volatile than Cassiar Gold Corp. It trades about -0.07 of its total potential returns per unit of risk. Cassiar Gold Corp is currently generating about -0.09 per unit of volatility. If you would invest 17.00 in Cassiar Gold Corp on September 2, 2024 and sell it today you would lose (2.00) from holding Cassiar Gold Corp or give up 11.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Falcon Gold Corp vs. Cassiar Gold Corp
Performance |
| Timeline |
| Falcon Gold Corp |
| Cassiar Gold Corp |
Falcon Gold and Cassiar Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Falcon Gold and Cassiar Gold
The main advantage of trading using opposite Falcon Gold and Cassiar Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Falcon Gold position performs unexpectedly, Cassiar 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 Cassiar Gold will offset losses from the drop in Cassiar Gold's long position.| Falcon Gold vs. Aurion Resources | Falcon Gold vs. Rio2 Limited | Falcon Gold vs. Palamina Corp | Falcon Gold vs. BTU Metals Corp |
| Cassiar Gold vs. Aurion Resources | Cassiar Gold vs. Rio2 Limited | Cassiar Gold vs. Palamina Corp | Cassiar Gold vs. BTU Metals 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |