Correlation Between Freegold Ventures and Battery Minerals
Can any of the company-specific risk be diversified away by investing in both Freegold Ventures and Battery Minerals 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 Freegold Ventures and Battery Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Freegold Ventures Limited and Battery Minerals Limited, you can compare the effects of market volatilities on Freegold Ventures and Battery Minerals 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 Freegold Ventures with a short position of Battery Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freegold Ventures and Battery Minerals.
Diversification Opportunities for Freegold Ventures and Battery Minerals
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Freegold and Battery is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Freegold Ventures Limited and Battery Minerals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Battery Minerals and Freegold Ventures 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 Freegold Ventures Limited are associated (or correlated) with Battery Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Battery Minerals has no effect on the direction of Freegold Ventures i.e., Freegold Ventures and Battery Minerals go up and down completely randomly.
Pair Corralation between Freegold Ventures and Battery Minerals
Assuming the 90 days horizon Freegold Ventures Limited is expected to generate 0.62 times more return on investment than Battery Minerals. However, Freegold Ventures Limited is 1.6 times less risky than Battery Minerals. It trades about 0.26 of its potential returns per unit of risk. Battery Minerals Limited is currently generating about 0.0 per unit of risk. If you would invest 48.00 in Freegold Ventures Limited on October 25, 2024 and sell it today you would earn a total of 13.00 from holding Freegold Ventures Limited or generate 27.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Freegold Ventures Limited vs. Battery Minerals Limited
Performance |
| Timeline |
| Freegold Ventures |
| Battery Minerals |
Freegold Ventures and Battery Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freegold Ventures and Battery Minerals
The main advantage of trading using opposite Freegold Ventures and Battery Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freegold Ventures position performs unexpectedly, Battery Minerals 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 Battery Minerals will offset losses from the drop in Battery Minerals' long position.| Freegold Ventures vs. Mundoro Capital | Freegold Ventures vs. Norra Metals Corp | Freegold Ventures vs. E79 Resources Corp | Freegold Ventures vs. Voltage Metals Corp |
| Battery Minerals vs. Global Battery Metals | Battery Minerals vs. Stallion Discoveries Corp | Battery Minerals vs. Vanadiumcorp Resource | Battery Minerals vs. Surge Copper 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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