Correlation Between Newport Exploration and Fury Gold
Can any of the company-specific risk be diversified away by investing in both Newport Exploration 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 Newport Exploration and Fury Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newport Exploration and Fury Gold Mines, you can compare the effects of market volatilities on Newport Exploration 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 Newport Exploration with a short position of Fury Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newport Exploration and Fury Gold.
Diversification Opportunities for Newport Exploration and Fury Gold
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Newport and Fury is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Newport Exploration 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 Newport Exploration 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 Newport Exploration 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 Newport Exploration i.e., Newport Exploration and Fury Gold go up and down completely randomly.
Pair Corralation between Newport Exploration and Fury Gold
Assuming the 90 days horizon Newport Exploration is expected to generate 4.24 times more return on investment than Fury Gold. However, Newport Exploration is 4.24 times more volatile than Fury Gold Mines. It trades about 0.27 of its potential returns per unit of risk. Fury Gold Mines is currently generating about 0.11 per unit of risk. If you would invest 3.50 in Newport Exploration on October 20, 2024 and sell it today you would earn a total of 2.72 from holding Newport Exploration or generate 77.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Newport Exploration vs. Fury Gold Mines
Performance |
| Timeline |
| Newport Exploration |
| Fury Gold Mines |
Newport Exploration and Fury Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newport Exploration and Fury Gold
The main advantage of trading using opposite Newport Exploration and Fury Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newport Exploration 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.| Newport Exploration vs. Fury Gold Mines | Newport Exploration vs. Lion Copper and | Newport Exploration vs. Trilogy Metals | Newport Exploration vs. Western Copper and |
| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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