Correlation Between Fury Gold and Focus Graphite
Can any of the company-specific risk be diversified away by investing in both Fury Gold and Focus Graphite 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 Fury Gold and Focus Graphite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fury Gold Mines and Focus Graphite, you can compare the effects of market volatilities on Fury Gold and Focus Graphite 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 Fury Gold with a short position of Focus Graphite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fury Gold and Focus Graphite.
Diversification Opportunities for Fury Gold and Focus Graphite
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fury and Focus is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Fury Gold Mines and Focus Graphite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Focus Graphite and Fury 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 Fury Gold Mines are associated (or correlated) with Focus Graphite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Focus Graphite has no effect on the direction of Fury Gold i.e., Fury Gold and Focus Graphite go up and down completely randomly.
Pair Corralation between Fury Gold and Focus Graphite
Given the investment horizon of 90 days Fury Gold Mines is expected to under-perform the Focus Graphite. But the stock apears to be less risky and, when comparing its historical volatility, Fury Gold Mines is 4.08 times less risky than Focus Graphite. The stock trades about -0.05 of its potential returns per unit of risk. The Focus Graphite is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 5.00 in Focus Graphite on October 21, 2024 and sell it today you would earn a total of 0.88 from holding Focus Graphite or generate 17.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fury Gold Mines vs. Focus Graphite
Performance |
| Timeline |
| Fury Gold Mines |
| Focus Graphite |
Fury Gold and Focus Graphite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fury Gold and Focus Graphite
The main advantage of trading using opposite Fury Gold and Focus Graphite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fury Gold position performs unexpectedly, Focus Graphite 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 Focus Graphite will offset losses from the drop in Focus Graphite's long position.| Fury Gold vs. EMX Royalty Corp | Fury Gold vs. Western Copper and | Fury Gold vs. Nevada King Gold | Fury Gold vs. Aftermath Silver |
| Focus Graphite vs. Fury Gold Mines | Focus Graphite vs. Lion Copper and | Focus Graphite vs. Trilogy Metals | Focus Graphite vs. Western Copper and |
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.
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