Correlation Between Fury Gold and Western Copper
Can any of the company-specific risk be diversified away by investing in both Fury Gold and Western Copper 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 Western Copper 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 Western Copper and, you can compare the effects of market volatilities on Fury Gold and Western Copper 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 Western Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fury Gold and Western Copper.
Diversification Opportunities for Fury Gold and Western Copper
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fury and Western is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Fury Gold Mines and Western Copper and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Copper 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 Western Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Copper has no effect on the direction of Fury Gold i.e., Fury Gold and Western Copper go up and down completely randomly.
Pair Corralation between Fury Gold and Western Copper
Given the investment horizon of 90 days Fury Gold Mines is expected to under-perform the Western Copper. In addition to that, Fury Gold is 1.12 times more volatile than Western Copper and. It trades about -0.17 of its total potential returns per unit of risk. Western Copper and is currently generating about -0.01 per unit of volatility. If you would invest 117.00 in Western Copper and on August 24, 2024 and sell it today you would lose (3.00) from holding Western Copper and or give up 2.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fury Gold Mines vs. Western Copper and
Performance |
| Timeline |
| Fury Gold Mines |
| Western Copper |
Fury Gold and Western Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fury Gold and Western Copper
The main advantage of trading using opposite Fury Gold and Western Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fury Gold position performs unexpectedly, Western Copper 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 Western Copper will offset losses from the drop in Western Copper'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 |
| Western Copper vs. Fury Gold Mines | Western Copper vs. EMX Royalty Corp | Western Copper vs. Nevada King Gold | Western Copper vs. Aftermath Silver |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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