Correlation Between IGO and Fury Gold
Can any of the company-specific risk be diversified away by investing in both IGO 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 IGO and Fury Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IGO Limited and Fury Gold Mines, you can compare the effects of market volatilities on IGO 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 IGO with a short position of Fury Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of IGO and Fury Gold.
Diversification Opportunities for IGO and Fury Gold
Very good diversification
The 3 months correlation between IGO and Fury is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding IGO Limited 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 IGO 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 IGO Limited 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 IGO i.e., IGO and Fury Gold go up and down completely randomly.
Pair Corralation between IGO and Fury Gold
Assuming the 90 days horizon IGO Limited is expected to generate 0.76 times more return on investment than Fury Gold. However, IGO Limited is 1.32 times less risky than Fury Gold. It trades about -0.19 of its potential returns per unit of risk. Fury Gold Mines is currently generating about -0.15 per unit of risk. If you would invest 276.00 in IGO Limited on January 7, 2025 and sell it today you would lose (20.00) from holding IGO Limited or give up 7.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IGO Limited vs. Fury Gold Mines
Performance |
| Timeline |
| IGO Limited |
| Fury Gold Mines |
IGO and Fury Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IGO and Fury Gold
The main advantage of trading using opposite IGO and Fury Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IGO 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.| IGO vs. Grid Metals Corp | IGO vs. First American Silver | IGO vs. Qubec Nickel Corp | IGO vs. Lithium Australia NL |
| Fury Gold vs. EMX Royalty Corp | Fury Gold vs. Western Copper and | Fury Gold vs. Nevada King Gold | Fury Gold 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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