Correlation Between Falcon Gold and Endurance Gold
Can any of the company-specific risk be diversified away by investing in both Falcon Gold and Endurance 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 Endurance 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 Endurance Gold, you can compare the effects of market volatilities on Falcon Gold and Endurance 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 Endurance Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Falcon Gold and Endurance Gold.
Diversification Opportunities for Falcon Gold and Endurance Gold
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Falcon and Endurance is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Falcon Gold Corp and Endurance Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endurance Gold 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 Endurance Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endurance Gold has no effect on the direction of Falcon Gold i.e., Falcon Gold and Endurance Gold go up and down completely randomly.
Pair Corralation between Falcon Gold and Endurance Gold
Assuming the 90 days horizon Falcon Gold Corp is expected to generate 3.77 times more return on investment than Endurance Gold. However, Falcon Gold is 3.77 times more volatile than Endurance Gold. It trades about 0.02 of its potential returns per unit of risk. Endurance Gold is currently generating about -0.19 per unit of risk. If you would invest 2.90 in Falcon Gold Corp on August 28, 2024 and sell it today you would lose (0.42) from holding Falcon Gold Corp or give up 14.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Falcon Gold Corp vs. Endurance Gold
Performance |
| Timeline |
| Falcon Gold Corp |
| Endurance Gold |
Falcon Gold and Endurance Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Falcon Gold and Endurance Gold
The main advantage of trading using opposite Falcon Gold and Endurance Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Falcon Gold position performs unexpectedly, Endurance 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 Endurance Gold will offset losses from the drop in Endurance Gold's long position.| Falcon Gold vs. Aurion Resources | Falcon Gold vs. Liberty Gold Corp | Falcon Gold vs. Orezone Gold Corp | Falcon Gold vs. Fortuna Silver Mines |
| Endurance Gold vs. Red Pine Exploration | Endurance Gold vs. Altamira Gold Corp | Endurance Gold vs. Grande Portage Resources | Endurance Gold vs. Tectonic 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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