Correlation Between Liberty Gold and First Mining
Can any of the company-specific risk be diversified away by investing in both Liberty Gold and First Mining 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 Liberty Gold and First Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liberty Gold Corp and First Mining Gold, you can compare the effects of market volatilities on Liberty Gold and First Mining 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 Liberty Gold with a short position of First Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liberty Gold and First Mining.
Diversification Opportunities for Liberty Gold and First Mining
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Liberty and First is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Gold Corp and First Mining Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Mining Gold and Liberty 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 Liberty Gold Corp are associated (or correlated) with First Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Mining Gold has no effect on the direction of Liberty Gold i.e., Liberty Gold and First Mining go up and down completely randomly.
Pair Corralation between Liberty Gold and First Mining
Assuming the 90 days horizon Liberty Gold Corp is expected to generate 0.94 times more return on investment than First Mining. However, Liberty Gold Corp is 1.07 times less risky than First Mining. It trades about 0.0 of its potential returns per unit of risk. First Mining Gold is currently generating about 0.0 per unit of risk. If you would invest 34.00 in Liberty Gold Corp on August 27, 2024 and sell it today you would lose (11.00) from holding Liberty Gold Corp or give up 32.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liberty Gold Corp vs. First Mining Gold
Performance |
| Timeline |
| Liberty Gold Corp |
| First Mining Gold |
Liberty Gold and First Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liberty Gold and First Mining
The main advantage of trading using opposite Liberty Gold and First Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liberty Gold position performs unexpectedly, First Mining 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 First Mining will offset losses from the drop in First Mining's long position.| Liberty Gold vs. Ascendant Resources | Liberty Gold vs. Cantex Mine Development | Liberty Gold vs. Amarc Resources | Liberty Gold vs. Sterling Metals Corp |
| First Mining vs. Aurion Resources | First Mining vs. Orezone Gold Corp | First Mining vs. Rio2 Limited | First Mining vs. Norsemont Mining |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |