Correlation Between Fortuna Silver and Gold Bull
Can any of the company-specific risk be diversified away by investing in both Fortuna Silver and Gold Bull 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 Fortuna Silver and Gold Bull into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortuna Silver Mines and Gold Bull Resources, you can compare the effects of market volatilities on Fortuna Silver and Gold Bull 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 Fortuna Silver with a short position of Gold Bull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortuna Silver and Gold Bull.
Diversification Opportunities for Fortuna Silver and Gold Bull
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fortuna and Gold is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Fortuna Silver Mines and Gold Bull Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Bull Resources and Fortuna Silver 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 Fortuna Silver Mines are associated (or correlated) with Gold Bull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Bull Resources has no effect on the direction of Fortuna Silver i.e., Fortuna Silver and Gold Bull go up and down completely randomly.
Pair Corralation between Fortuna Silver and Gold Bull
Considering the 90-day investment horizon Fortuna Silver Mines is expected to generate 0.51 times more return on investment than Gold Bull. However, Fortuna Silver Mines is 1.96 times less risky than Gold Bull. It trades about -0.07 of its potential returns per unit of risk. Gold Bull Resources is currently generating about -0.41 per unit of risk. If you would invest 497.00 in Fortuna Silver Mines on September 1, 2024 and sell it today you would lose (19.00) from holding Fortuna Silver Mines or give up 3.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fortuna Silver Mines vs. Gold Bull Resources
Performance |
| Timeline |
| Fortuna Silver Mines |
| Gold Bull Resources |
Fortuna Silver and Gold Bull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortuna Silver and Gold Bull
The main advantage of trading using opposite Fortuna Silver and Gold Bull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortuna Silver position performs unexpectedly, Gold Bull 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 Gold Bull will offset losses from the drop in Gold Bull's long position.| Fortuna Silver vs. Pan American Silver | Fortuna Silver vs. Harmony Gold Mining | Fortuna Silver vs. IAMGold | Fortuna Silver vs. Kinross Gold |
| Gold Bull vs. Robex Resources | Gold Bull vs. Orefinders Resources | Gold Bull vs. Leviathan Gold | Gold Bull vs. Rover Metals 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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