Correlation Between Thesis Gold and Findev
Can any of the company-specific risk be diversified away by investing in both Thesis Gold and Findev 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 Thesis Gold and Findev into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thesis Gold and Findev Inc, you can compare the effects of market volatilities on Thesis Gold and Findev 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 Thesis Gold with a short position of Findev. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thesis Gold and Findev.
Diversification Opportunities for Thesis Gold and Findev
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thesis and Findev is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Thesis Gold and Findev Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Findev Inc and Thesis 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 Thesis Gold are associated (or correlated) with Findev. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Findev Inc has no effect on the direction of Thesis Gold i.e., Thesis Gold and Findev go up and down completely randomly.
Pair Corralation between Thesis Gold and Findev
Assuming the 90 days horizon Thesis Gold is expected to generate 2.34 times more return on investment than Findev. However, Thesis Gold is 2.34 times more volatile than Findev Inc. It trades about 0.02 of its potential returns per unit of risk. Findev Inc is currently generating about 0.03 per unit of risk. If you would invest 98.00 in Thesis Gold on August 29, 2024 and sell it today you would lose (36.00) from holding Thesis Gold or give up 36.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thesis Gold vs. Findev Inc
Performance |
| Timeline |
| Thesis Gold |
| Findev Inc |
Thesis Gold and Findev Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thesis Gold and Findev
The main advantage of trading using opposite Thesis Gold and Findev positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thesis Gold position performs unexpectedly, Findev 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 Findev will offset losses from the drop in Findev's long position.| Thesis Gold vs. First Majestic Silver | Thesis Gold vs. Ivanhoe Energy | Thesis Gold vs. Orezone Gold Corp | Thesis Gold vs. Faraday Copper Corp |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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