Correlation Between Fury Gold and Stelmine Canada

Can any of the company-specific risk be diversified away by investing in both Fury Gold and Stelmine Canada 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 Fury Gold and Stelmine Canada into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fury Gold Mines and Stelmine Canada, you can compare the effects of market volatilities on Fury Gold and Stelmine Canada 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 Fury Gold with a short position of Stelmine Canada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fury Gold and Stelmine Canada.

Diversification Opportunities for Fury Gold and Stelmine Canada

0.19

Correlation Coefficient

Fury Gold  Stelmine Canada

Average diversification

The 3 months correlation between Fury and Stelmine is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Fury Gold Mines and Stelmine Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stelmine Canada and Fury 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 Fury Gold Mines are associated (or correlated) with Stelmine Canada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stelmine Canada has no effect on the direction of Fury Gold i.e., Fury Gold and Stelmine Canada go up and down completely randomly.

Pair Corralation between Fury Gold and Stelmine Canada

Given the investment horizon of 90 days Fury Gold Mines is expected to generate 0.28 times more return on investment than Stelmine Canada. However, Fury Gold Mines is 3.52 times less risky than Stelmine Canada. It trades about 0.01 of its potential returns per unit of risk. Stelmine Canada is currently generating about -0.06 per unit of risk. If you would invest  41.00  in Fury Gold Mines on September 12, 2024 and sell it today you would lose (0.50) from holding Fury Gold Mines or give up 1.22% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Fury Gold Mines  vs.  Stelmine Canada

Fury Gold Mines

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fury Gold Mines has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Fury Gold is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Stelmine Canada

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Stelmine Canada has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Fury Gold and Stelmine Canada

The main advantage of trading using opposite Fury Gold and Stelmine Canada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fury Gold position performs unexpectedly, Stelmine Canada 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 Stelmine Canada will offset losses from the drop in Stelmine Canada's long position.

The idea behind Fury Gold Mines and Stelmine Canada pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.