Correlation Between Fremont Gold and BeMetals Corp

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

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

Diversification Opportunities for Fremont Gold and BeMetals Corp

0.0

Correlation Coefficient

Fremont Gold  BeMetals Corp

Pay attention - limited upside

The 3 months correlation between Fremont and BeMetals is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fremont Gold and BeMetals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeMetals Corp and Fremont 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 Fremont Gold are associated (or correlated) with BeMetals Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeMetals Corp has no effect on the direction of Fremont Gold i.e., Fremont Gold and BeMetals Corp go up and down completely randomly.

Pair Corralation between Fremont Gold and BeMetals Corp

If you would invest  13.00  in Fremont Gold on October 25, 2024 and sell it today you would lose (2.00) from holding Fremont Gold or give up 15.38% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.96%
Values	Daily Returns

Fremont Gold  vs.  BeMetals Corp

Fremont Gold

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Fremont Gold has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly weak basic indicators, Fremont Gold may actually be approaching a critical reversion point that can send shares even higher in February 2025.

BeMetals Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BeMetals Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, BeMetals Corp is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Fremont Gold and BeMetals Corp

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

The idea behind Fremont Gold and BeMetals Corp 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.