Correlation Between Lion Copper and Fury Gold
Can any of the company-specific risk be diversified away by investing in both Lion Copper 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 Lion Copper and Fury Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lion Copper and and Fury Gold Mines, you can compare the effects of market volatilities on Lion Copper 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 Lion Copper with a short position of Fury Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion Copper and Fury Gold.
Diversification Opportunities for Lion Copper and Fury Gold
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lion and Fury is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Lion Copper and 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 Lion Copper 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 Lion Copper and 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 Lion Copper i.e., Lion Copper and Fury Gold go up and down completely randomly.
Pair Corralation between Lion Copper and Fury Gold
Assuming the 90 days horizon Lion Copper and is expected to generate 1.76 times more return on investment than Fury Gold. However, Lion Copper is 1.76 times more volatile than Fury Gold Mines. It trades about 0.04 of its potential returns per unit of risk. Fury Gold Mines is currently generating about 0.03 per unit of risk. If you would invest 5.00 in Lion Copper and on September 3, 2024 and sell it today you would earn a total of 1.00 from holding Lion Copper and or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion Copper and vs. Fury Gold Mines
Performance |
| Timeline |
| Lion Copper |
| Fury Gold Mines |
Lion Copper and Fury Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion Copper and Fury Gold
The main advantage of trading using opposite Lion Copper and Fury Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion Copper 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.| Lion Copper vs. Qubec Nickel Corp | Lion Copper vs. IGO Limited | Lion Copper vs. Avarone Metals | Lion Copper vs. Adriatic Metals PLC |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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