Correlation Between NYSE Composite and Freeman Gold
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Freeman 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 NYSE Composite and Freeman Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Freeman Gold Corp, you can compare the effects of market volatilities on NYSE Composite and Freeman 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 NYSE Composite with a short position of Freeman Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Freeman Gold.
Diversification Opportunities for NYSE Composite and Freeman Gold
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NYSE and Freeman is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Freeman Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freeman Gold Corp and NYSE Composite 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 NYSE Composite are associated (or correlated) with Freeman Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freeman Gold Corp has no effect on the direction of NYSE Composite i.e., NYSE Composite and Freeman Gold go up and down completely randomly.
Pair Corralation between NYSE Composite and Freeman Gold
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.1 times more return on investment than Freeman Gold. However, NYSE Composite is 10.38 times less risky than Freeman Gold. It trades about 0.11 of its potential returns per unit of risk. Freeman Gold Corp is currently generating about 0.01 per unit of risk. If you would invest 1,550,264 in NYSE Composite on August 31, 2024 and sell it today you would earn a total of 476,940 from holding NYSE Composite or generate 30.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
NYSE Composite vs. Freeman Gold Corp
Performance |
| Timeline |
NYSE Composite and Freeman Gold Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Freeman Gold Corp
Pair trading matchups for Freeman Gold
Pair Trading with NYSE Composite and Freeman Gold
The main advantage of trading using opposite NYSE Composite and Freeman Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Freeman 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 Freeman Gold will offset losses from the drop in Freeman Gold's long position.| NYSE Composite vs. Nextplat Corp | NYSE Composite vs. Qualys Inc | NYSE Composite vs. Cadence Design Systems | NYSE Composite vs. Asure Software |
| Freeman Gold vs. Advance Gold Corp | Freeman Gold vs. Minnova Corp | Freeman Gold vs. Blue Star Gold | Freeman Gold vs. Angkor Resources Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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