Correlation Between Independence Gold and Falcon Gold
Can any of the company-specific risk be diversified away by investing in both Independence Gold and Falcon 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 Independence Gold and Falcon Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Independence Gold Corp and Falcon Gold Corp, you can compare the effects of market volatilities on Independence Gold and Falcon 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 Independence Gold with a short position of Falcon Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Independence Gold and Falcon Gold.
Diversification Opportunities for Independence Gold and Falcon Gold
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Independence and Falcon is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Independence Gold Corp and Falcon Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Falcon Gold Corp and Independence 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 Independence Gold Corp are associated (or correlated) with Falcon Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Falcon Gold Corp has no effect on the direction of Independence Gold i.e., Independence Gold and Falcon Gold go up and down completely randomly.
Pair Corralation between Independence Gold and Falcon Gold
Assuming the 90 days horizon Independence Gold Corp is expected to generate 0.39 times more return on investment than Falcon Gold. However, Independence Gold Corp is 2.54 times less risky than Falcon Gold. It trades about -0.05 of its potential returns per unit of risk. Falcon Gold Corp is currently generating about -0.07 per unit of risk. If you would invest 17.00 in Independence Gold Corp on September 2, 2024 and sell it today you would lose (1.00) from holding Independence Gold Corp or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Independence Gold Corp vs. Falcon Gold Corp
Performance |
| Timeline |
| Independence Gold Corp |
| Falcon Gold Corp |
Independence Gold and Falcon Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Independence Gold and Falcon Gold
The main advantage of trading using opposite Independence Gold and Falcon Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Independence Gold position performs unexpectedly, Falcon 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 Falcon Gold will offset losses from the drop in Falcon Gold's long position.| Independence Gold vs. Heliostar Metals | Independence Gold vs. Revival Gold | Independence Gold vs. Cabral Gold | Independence Gold vs. Cassiar Gold Corp |
| Falcon Gold vs. Aurion Resources | Falcon Gold vs. Rio2 Limited | Falcon Gold vs. Palamina Corp | Falcon Gold vs. BTU Metals Corp |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |