Correlation Between Electra Battery and Fury Gold

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

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

Diversification Opportunities for Electra Battery and Fury Gold

-0.22

Correlation Coefficient

Electra Battery  Fury Gold

Very good diversification

The 3 months correlation between Electra and Fury is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Electra Battery Materials 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 Electra Battery 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 Electra Battery Materials 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 Electra Battery i.e., Electra Battery and Fury Gold go up and down completely randomly.

Pair Corralation between Electra Battery and Fury Gold

Given the investment horizon of 90 days Electra Battery Materials is expected to under-perform the Fury Gold. In addition to that, Electra Battery is 1.84 times more volatile than Fury Gold Mines. It trades about -0.02 of its total potential returns per unit of risk. Fury Gold Mines is currently generating about 0.06 per unit of volatility. If you would invest  37.00  in Fury Gold Mines on December 21, 2024 and sell it today you would earn a total of  3.00  from holding Fury Gold Mines or generate 8.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Electra Battery Materials  vs.  Fury Gold Mines

Electra Battery Materials

Risk-Adjusted Performance

Very Weak

Over the last 90 days Electra Battery Materials has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's fundamental drivers remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Fury Gold Mines

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Fury Gold Mines are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Fury Gold may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Electra Battery and Fury Gold

The main advantage of trading using opposite Electra Battery and Fury Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electra Battery 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.

The idea behind Electra Battery Materials and Fury Gold Mines 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..