Correlation Between First Tellurium and Gemfields Group

Can any of the company-specific risk be diversified away by investing in both First Tellurium and Gemfields Group 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 First Tellurium and Gemfields Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for First Tellurium and Gemfields Group

0.1

Correlation Coefficient

First Tellurium  Gemfields Group

Average diversification

The 3 months correlation between First and Gemfields is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding First Tellurium Corp and Gemfields Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gemfields Group and First Tellurium 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 First Tellurium Corp are associated (or correlated) with Gemfields Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gemfields Group has no effect on the direction of First Tellurium i.e., First Tellurium and Gemfields Group go up and down completely randomly.

Pair Corralation between First Tellurium and Gemfields Group

If you would invest  10.00  in First Tellurium Corp on September 4, 2024 and sell it today you would earn a total of  0.00  from holding First Tellurium Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

First Tellurium Corp  vs.  Gemfields Group Limited

First Tellurium Corp

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in First Tellurium Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, First Tellurium reported solid returns over the last few months and may actually be approaching a breakup point.

Gemfields Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gemfields Group Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, Gemfields Group is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with First Tellurium and Gemfields Group

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

The idea behind First Tellurium Corp and Gemfields Group Limited 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.