Correlation Between Prosper Gold and Flinders Resources
Can any of the company-specific risk be diversified away by investing in both Prosper Gold and Flinders Resources 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 Prosper Gold and Flinders Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prosper Gold Corp and Flinders Resources Limited, you can compare the effects of market volatilities on Prosper Gold and Flinders Resources 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 Prosper Gold with a short position of Flinders Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prosper Gold and Flinders Resources.
Diversification Opportunities for Prosper Gold and Flinders Resources
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Prosper and Flinders is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Prosper Gold Corp and Flinders Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flinders Resources and Prosper 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 Prosper Gold Corp are associated (or correlated) with Flinders Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flinders Resources has no effect on the direction of Prosper Gold i.e., Prosper Gold and Flinders Resources go up and down completely randomly.
Pair Corralation between Prosper Gold and Flinders Resources
Assuming the 90 days horizon Prosper Gold is expected to generate 8.82 times less return on investment than Flinders Resources. But when comparing it to its historical volatility, Prosper Gold Corp is 1.13 times less risky than Flinders Resources. It trades about 0.02 of its potential returns per unit of risk. Flinders Resources Limited is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 20.00 in Flinders Resources Limited on November 6, 2024 and sell it today you would earn a total of 550.00 from holding Flinders Resources Limited or generate 2750.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Prosper Gold Corp vs. Flinders Resources Limited
Performance |
| Timeline |
| Prosper Gold Corp |
| Flinders Resources |
Prosper Gold and Flinders Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prosper Gold and Flinders Resources
The main advantage of trading using opposite Prosper Gold and Flinders Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prosper Gold position performs unexpectedly, Flinders Resources 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 Flinders Resources will offset losses from the drop in Flinders Resources' long position.| Prosper Gold vs. Algoma Steel Group | Prosper Gold vs. Pollard Banknote Limited | Prosper Gold vs. IGM Financial | Prosper Gold vs. High Liner Foods |
| Flinders Resources vs. IAMGold | Flinders Resources vs. Eldorado Gold Corp | Flinders Resources vs. Alamos Gold | Flinders Resources vs. NovaGold Resources |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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