Correlation Between Fortune Bay and HighGold Mining
Can any of the company-specific risk be diversified away by investing in both Fortune Bay and HighGold Mining 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 HighGold Mining 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 HighGold Mining, you can compare the effects of market volatilities on Fortune Bay and HighGold Mining 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 HighGold Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortune Bay and HighGold Mining.
Diversification Opportunities for Fortune Bay and HighGold Mining
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fortune and HighGold is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Fortune Bay Corp and HighGold Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HighGold Mining 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 HighGold Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HighGold Mining has no effect on the direction of Fortune Bay i.e., Fortune Bay and HighGold Mining go up and down completely randomly.
Pair Corralation between Fortune Bay and HighGold Mining
If you would invest 17.00 in Fortune Bay Corp on September 1, 2024 and sell it today you would earn a total of 1.00 from holding Fortune Bay Corp or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Fortune Bay Corp vs. HighGold Mining
Performance |
| Timeline |
| Fortune Bay Corp |
| HighGold Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fortune Bay and HighGold Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortune Bay and HighGold Mining
The main advantage of trading using opposite Fortune Bay and HighGold Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortune Bay position performs unexpectedly, HighGold Mining 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 HighGold Mining will offset losses from the drop in HighGold Mining's long position.| Fortune Bay vs. South32 Limited | Fortune Bay vs. NioCorp Developments Ltd | Fortune Bay vs. HUMANA INC | Fortune Bay vs. SCOR PK |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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