Correlation Between GoldMining and Fury Gold
Can any of the company-specific risk be diversified away by investing in both GoldMining 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 GoldMining and Fury Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoldMining and Fury Gold Mines, you can compare the effects of market volatilities on GoldMining 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 GoldMining with a short position of Fury Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoldMining and Fury Gold.
Diversification Opportunities for GoldMining and Fury Gold
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GoldMining and Fury is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding GoldMining 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 GoldMining 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 GoldMining 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 GoldMining i.e., GoldMining and Fury Gold go up and down completely randomly.
Pair Corralation between GoldMining and Fury Gold
Assuming the 90 days trading horizon GoldMining is expected to generate 1.02 times more return on investment than Fury Gold. However, GoldMining is 1.02 times more volatile than Fury Gold Mines. It trades about -0.06 of its potential returns per unit of risk. Fury Gold Mines is currently generating about -0.07 per unit of risk. If you would invest 129.00 in GoldMining on September 1, 2024 and sell it today you would lose (6.00) from holding GoldMining or give up 4.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GoldMining vs. Fury Gold Mines
Performance |
| Timeline |
| GoldMining |
| Fury Gold Mines |
GoldMining and Fury Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoldMining and Fury Gold
The main advantage of trading using opposite GoldMining and Fury Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoldMining 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.| GoldMining vs. First Majestic Silver | GoldMining vs. Ivanhoe Energy | GoldMining vs. Orezone Gold Corp | GoldMining vs. Faraday Copper Corp |
| Fury Gold vs. Tier One Silver | Fury Gold vs. Liberty Gold Corp | Fury Gold vs. GoldMining | Fury Gold vs. First Mining Gold |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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