Correlation Between Gold Fields and First Physicians
Can any of the company-specific risk be diversified away by investing in both Gold Fields and First Physicians 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 Gold Fields and First Physicians into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gold Fields Ltd and First Physicians Capital, you can compare the effects of market volatilities on Gold Fields and First Physicians 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 Gold Fields with a short position of First Physicians. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Fields and First Physicians.
Diversification Opportunities for Gold Fields and First Physicians
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gold and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gold Fields Ltd and First Physicians Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Physicians Capital and Gold Fields 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 Gold Fields Ltd are associated (or correlated) with First Physicians. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Physicians Capital has no effect on the direction of Gold Fields i.e., Gold Fields and First Physicians go up and down completely randomly.
Pair Corralation between Gold Fields and First Physicians
If you would invest 1,454 in Gold Fields Ltd on November 18, 2024 and sell it today you would earn a total of 433.00 from holding Gold Fields Ltd or generate 29.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 93.85% |
| Values | Daily Returns |
Gold Fields Ltd vs. First Physicians Capital
Performance |
| Timeline |
| Gold Fields |
| First Physicians Capital |
Gold Fields and First Physicians Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold Fields and First Physicians
The main advantage of trading using opposite Gold Fields and First Physicians positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Fields position performs unexpectedly, First Physicians 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 First Physicians will offset losses from the drop in First Physicians' long position.| Gold Fields vs. Agnico Eagle Mines | Gold Fields vs. Kinross Gold | Gold Fields vs. Harmony Gold Mining | Gold Fields vs. Franco Nevada |
| First Physicians vs. Univec Inc | First Physicians vs. Pao Group | First Physicians vs. Aveanna Healthcare Holdings | First Physicians vs. IMAC Holdings |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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