Correlation Between Marathon Gold and Franco Nevada
Can any of the company-specific risk be diversified away by investing in both Marathon Gold and Franco Nevada 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 Marathon Gold and Franco Nevada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marathon Gold and Franco Nevada, you can compare the effects of market volatilities on Marathon Gold and Franco Nevada 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 Marathon Gold with a short position of Franco Nevada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marathon Gold and Franco Nevada.
Diversification Opportunities for Marathon Gold and Franco Nevada
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Marathon and Franco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Marathon Gold and Franco Nevada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franco Nevada and Marathon 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 Marathon Gold are associated (or correlated) with Franco Nevada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franco Nevada has no effect on the direction of Marathon Gold i.e., Marathon Gold and Franco Nevada go up and down completely randomly.
Pair Corralation between Marathon Gold and Franco Nevada
If you would invest 15,428 in Franco Nevada on January 17, 2025 and sell it today you would earn a total of 1,681 from holding Franco Nevada or generate 10.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Marathon Gold vs. Franco Nevada
Performance |
| Timeline |
| Marathon Gold |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Franco Nevada |
Marathon Gold and Franco Nevada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marathon Gold and Franco Nevada
The main advantage of trading using opposite Marathon Gold and Franco Nevada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marathon Gold position performs unexpectedly, Franco Nevada 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 Franco Nevada will offset losses from the drop in Franco Nevada's long position.| Marathon Gold vs. I 80 Gold Corp | Marathon Gold vs. Wesdome Gold Mines | Marathon Gold vs. K92 Mining | Marathon Gold vs. Equinox Gold Corp |
| Franco Nevada vs. Royal Gold | Franco Nevada vs. Agnico Eagle Mines | Franco Nevada vs. Pan American Silver | Franco Nevada vs. Sandstorm Gold Ltd |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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