Correlation Between Fremont Gold and Endurance Gold
Can any of the company-specific risk be diversified away by investing in both Fremont 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 Fremont 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 Fremont Gold and Endurance Gold, you can compare the effects of market volatilities on Fremont 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 Fremont Gold with a short position of Endurance Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fremont Gold and Endurance Gold.
Diversification Opportunities for Fremont Gold and Endurance Gold
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fremont and Endurance is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Fremont Gold and Endurance Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endurance Gold and Fremont 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 Fremont Gold 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 Fremont Gold i.e., Fremont Gold and Endurance Gold go up and down completely randomly.
Pair Corralation between Fremont Gold and Endurance Gold
Assuming the 90 days horizon Fremont Gold is expected to generate 6.0 times more return on investment than Endurance Gold. However, Fremont Gold is 6.0 times more volatile than Endurance Gold. It trades about 0.11 of its potential returns per unit of risk. Endurance Gold is currently generating about 0.01 per unit of risk. If you would invest 7.17 in Fremont Gold on November 3, 2024 and sell it today you would earn a total of 2.13 from holding Fremont Gold or generate 29.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.44% |
| Values | Daily Returns |
Fremont Gold vs. Endurance Gold
Performance |
| Timeline |
| Fremont Gold |
| Endurance Gold |
Fremont Gold and Endurance Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fremont Gold and Endurance Gold
The main advantage of trading using opposite Fremont Gold and Endurance Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fremont 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.| Fremont Gold vs. Altamira Gold Corp | Fremont Gold vs. Rio2 Limited | Fremont Gold vs. Novo Resources Corp | Fremont Gold vs. Lion One Metals |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
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