Correlation Between Fortune Bay and Cassiar Gold
Can any of the company-specific risk be diversified away by investing in both Fortune Bay and Cassiar 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 Fortune Bay and Cassiar Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortune Bay Corp and Cassiar Gold Corp, you can compare the effects of market volatilities on Fortune Bay and Cassiar 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 Fortune Bay with a short position of Cassiar Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortune Bay and Cassiar Gold.
Diversification Opportunities for Fortune Bay and Cassiar Gold
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fortune and Cassiar is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Fortune Bay Corp and Cassiar Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cassiar Gold Corp and Fortune Bay 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 Fortune Bay Corp are associated (or correlated) with Cassiar Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cassiar Gold Corp has no effect on the direction of Fortune Bay i.e., Fortune Bay and Cassiar Gold go up and down completely randomly.
Pair Corralation between Fortune Bay and Cassiar Gold
Assuming the 90 days horizon Fortune Bay Corp is expected to generate 1.7 times more return on investment than Cassiar Gold. However, Fortune Bay is 1.7 times more volatile than Cassiar Gold Corp. It trades about 0.05 of its potential returns per unit of risk. Cassiar Gold Corp is currently generating about -0.03 per unit of risk. If you would invest 17.00 in Fortune Bay Corp on November 28, 2024 and sell it today you would earn a total of 5.00 from holding Fortune Bay Corp or generate 29.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.86% |
| Values | Daily Returns |
Fortune Bay Corp vs. Cassiar Gold Corp
Performance |
| Timeline |
| Fortune Bay Corp |
| Cassiar Gold Corp |
Fortune Bay and Cassiar Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortune Bay and Cassiar Gold
The main advantage of trading using opposite Fortune Bay and Cassiar Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortune Bay position performs unexpectedly, Cassiar 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 Cassiar Gold will offset losses from the drop in Cassiar Gold's long position.| Fortune Bay vs. Lundin Gold | Fortune Bay vs. Lumina Gold Corp | Fortune Bay vs. Liberty Gold Corp | Fortune Bay vs. Dynacor Gold Mines |
| Cassiar Gold vs. Independence Gold Corp | Cassiar Gold vs. Westward Gold | Cassiar Gold vs. Cabral Gold | Cassiar Gold vs. Revival 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |