Correlation Between Flowery Gold and TinOne Resources
Can any of the company-specific risk be diversified away by investing in both Flowery Gold and TinOne 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 TinOne 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 TinOne Resources, you can compare the effects of market volatilities on Flowery Gold and TinOne 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 TinOne Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flowery Gold and TinOne Resources.
Diversification Opportunities for Flowery Gold and TinOne Resources
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Flowery and TinOne is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Flowery Gold Mines and TinOne Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TinOne 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 TinOne Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TinOne Resources has no effect on the direction of Flowery Gold i.e., Flowery Gold and TinOne Resources go up and down completely randomly.
Pair Corralation between Flowery Gold and TinOne Resources
If you would invest 0.69 in TinOne Resources on November 18, 2024 and sell it today you would earn a total of 6.81 from holding TinOne Resources or generate 986.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flowery Gold Mines vs. TinOne Resources
Performance |
| Timeline |
| Flowery Gold Mines |
| TinOne Resources |
Flowery Gold and TinOne Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flowery Gold and TinOne Resources
The main advantage of trading using opposite Flowery Gold and TinOne Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flowery Gold position performs unexpectedly, TinOne 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 TinOne Resources will offset losses from the drop in TinOne Resources' long position.| Flowery Gold vs. Hycroft Mining Holding | Flowery Gold vs. Paramount Gold Nevada | Flowery Gold vs. Hycroft Mining Holding | Flowery Gold vs. Kinross Gold |
| TinOne Resources vs. Hycroft Mining Holding | TinOne Resources vs. Paramount Gold Nevada | TinOne Resources vs. Hycroft Mining Holding | TinOne Resources vs. Kinross Gold |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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