Correlation Between Standard Lithium and Fury Gold
Can any of the company-specific risk be diversified away by investing in both Standard Lithium 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 Standard Lithium and Fury Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Standard Lithium and Fury Gold Mines, you can compare the effects of market volatilities on Standard Lithium 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 Standard Lithium with a short position of Fury Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Standard Lithium and Fury Gold.
Diversification Opportunities for Standard Lithium and Fury Gold
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Standard and Fury is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Standard Lithium 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 Standard Lithium 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 Standard Lithium 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 Standard Lithium i.e., Standard Lithium and Fury Gold go up and down completely randomly.
Pair Corralation between Standard Lithium and Fury Gold
Considering the 90-day investment horizon Standard Lithium is expected to under-perform the Fury Gold. In addition to that, Standard Lithium is 1.44 times more volatile than Fury Gold Mines. It trades about -0.24 of its total potential returns per unit of risk. Fury Gold Mines is currently generating about -0.05 per unit of volatility. If you would invest 44.00 in Fury Gold Mines on September 1, 2024 and sell it today you would lose (2.00) from holding Fury Gold Mines or give up 4.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Standard Lithium vs. Fury Gold Mines
Performance |
| Timeline |
| Standard Lithium |
| Fury Gold Mines |
Standard Lithium and Fury Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Standard Lithium and Fury Gold
The main advantage of trading using opposite Standard Lithium and Fury Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Standard Lithium 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.| Standard Lithium vs. NioCorp Developments Ltd | Standard Lithium vs. Teck Resources Ltd | Standard Lithium vs. Sigma Lithium Resources | Standard Lithium vs. MP Materials Corp |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |