Correlation Between Glencore PLC and Fury Gold
Can any of the company-specific risk be diversified away by investing in both Glencore PLC and Fury Gold 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 Glencore PLC and Fury Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glencore PLC ADR and Fury Gold Mines, you can compare the effects of market volatilities on Glencore PLC and Fury Gold 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 Glencore PLC with a short position of Fury Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glencore PLC and Fury Gold.
Diversification Opportunities for Glencore PLC and Fury Gold
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Glencore and Fury is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Glencore PLC ADR and Fury Gold Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fury Gold Mines and Glencore PLC 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 Glencore PLC ADR are associated (or correlated) with Fury Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fury Gold Mines has no effect on the direction of Glencore PLC i.e., Glencore PLC and Fury Gold go up and down completely randomly.
Pair Corralation between Glencore PLC and Fury Gold
Assuming the 90 days horizon Glencore PLC is expected to generate 19.43 times less return on investment than Fury Gold. But when comparing it to its historical volatility, Glencore PLC ADR is 2.21 times less risky than Fury Gold. It trades about 0.0 of its potential returns per unit of risk. Fury Gold Mines is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 45.00 in Fury Gold Mines on August 31, 2024 and sell it today you would lose (3.00) from holding Fury Gold Mines or give up 6.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glencore PLC ADR vs. Fury Gold Mines
Performance |
| Timeline |
| Glencore PLC ADR |
| Fury Gold Mines |
Glencore PLC and Fury Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glencore PLC and Fury Gold
The main advantage of trading using opposite Glencore PLC and Fury Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glencore PLC position performs unexpectedly, Fury Gold 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 Fury Gold will offset losses from the drop in Fury Gold's long position.| Glencore PLC vs. Liontown Resources Limited | Glencore PLC vs. ATT Inc | Glencore PLC vs. Merck Company | Glencore PLC vs. Walt Disney |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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