Correlation Between Fortune Bay and I 80
Can any of the company-specific risk be diversified away by investing in both Fortune Bay and I 80 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 I 80 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 I 80 Gold Corp, you can compare the effects of market volatilities on Fortune Bay and I 80 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 I 80. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortune Bay and I 80.
Diversification Opportunities for Fortune Bay and I 80
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fortune and IAUX is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Fortune Bay Corp and I 80 Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I 80 Gold 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 I 80. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I 80 Gold has no effect on the direction of Fortune Bay i.e., Fortune Bay and I 80 go up and down completely randomly.
Pair Corralation between Fortune Bay and I 80
Assuming the 90 days horizon Fortune Bay Corp is expected to generate 0.35 times more return on investment than I 80. However, Fortune Bay Corp is 2.86 times less risky than I 80. It trades about 0.07 of its potential returns per unit of risk. I 80 Gold Corp is currently generating about -0.03 per unit of risk. 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 Together |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Fortune Bay Corp vs. I 80 Gold Corp
Performance |
| Timeline |
| Fortune Bay Corp |
| I 80 Gold |
Fortune Bay and I 80 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortune Bay and I 80
The main advantage of trading using opposite Fortune Bay and I 80 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortune Bay position performs unexpectedly, I 80 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 I 80 will offset losses from the drop in I 80's long position.| Fortune Bay vs. South32 Limited | Fortune Bay vs. NioCorp Developments Ltd | Fortune Bay vs. HUMANA INC | Fortune Bay vs. SCOR PK |
| I 80 vs. K92 Mining | I 80 vs. Wesdome Gold Mines | I 80 vs. Fortuna Silver Mines | I 80 vs. Sandstorm Gold Ltd |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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