Correlation Between Flowery Gold and Campbell Resources
Can any of the company-specific risk be diversified away by investing in both Flowery Gold and Campbell Resources 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 Flowery Gold and Campbell Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flowery Gold Mines and Campbell Resources, you can compare the effects of market volatilities on Flowery Gold and Campbell Resources 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 Flowery Gold with a short position of Campbell Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flowery Gold and Campbell Resources.
Diversification Opportunities for Flowery Gold and Campbell Resources
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Flowery and Campbell is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Flowery Gold Mines and Campbell Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Campbell Resources and Flowery 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 Flowery Gold Mines are associated (or correlated) with Campbell Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Campbell Resources has no effect on the direction of Flowery Gold i.e., Flowery Gold and Campbell Resources go up and down completely randomly.
Pair Corralation between Flowery Gold and Campbell Resources
If you would invest (100.00) in Campbell Resources on August 27, 2024 and sell it today you would earn a total of 100.00 from holding Campbell Resources or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Flowery Gold Mines vs. Campbell Resources
Performance |
| Timeline |
| Flowery Gold Mines |
| Campbell Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Flowery Gold and Campbell Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flowery Gold and Campbell Resources
The main advantage of trading using opposite Flowery Gold and Campbell Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flowery Gold position performs unexpectedly, Campbell Resources 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 Campbell Resources will offset losses from the drop in Campbell Resources' long position.| Flowery Gold vs. Aurion Resources | Flowery Gold vs. Liberty Gold Corp | Flowery Gold vs. Orezone Gold Corp | Flowery Gold vs. Radisson Mining Resources |
| Campbell Resources vs. Maritime Resources Corp | Campbell Resources vs. Grande Portage Resources | Campbell Resources vs. Red Eagle Mining | Campbell Resources vs. Flowery Gold Mines |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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