Correlation Between Fury Gold and Aftermath Silver

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Can any of the company-specific risk be diversified away by investing in both Fury Gold and Aftermath Silver 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 Aftermath Silver 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 Aftermath Silver, you can compare the effects of market volatilities on Fury Gold and Aftermath Silver 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 Aftermath Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fury Gold and Aftermath Silver.

Diversification Opportunities for Fury Gold and Aftermath Silver

FuryAftermathDiversified AwayFuryAftermathDiversified Away100%
0.36
  Correlation Coefficient

Weak diversification

The 3 months correlation between Fury and Aftermath is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Fury Gold Mines and Aftermath Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aftermath Silver 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 Aftermath Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aftermath Silver has no effect on the direction of Fury Gold i.e., Fury Gold and Aftermath Silver go up and down completely randomly.

Pair Corralation between Fury Gold and Aftermath Silver

Given the investment horizon of 90 days Fury Gold is expected to generate 26.92 times less return on investment than Aftermath Silver. But when comparing it to its historical volatility, Fury Gold Mines is 1.42 times less risky than Aftermath Silver. It trades about 0.0 of its potential returns per unit of risk. Aftermath Silver is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  33.00  in Aftermath Silver on November 24, 2024 and sell it today you would earn a total of  6.00  from holding Aftermath Silver or generate 18.18% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Fury Gold Mines  vs.  Aftermath Silver

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -100102030
JavaScript chart by amCharts 3.21.15FURY AAGFF
       Timeline  
Fury Gold Mines 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
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 current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.350.360.370.380.390.40.410.420.430.44
Aftermath Silver 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Aftermath Silver are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Aftermath Silver reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.280.30.320.340.360.380.40.42

Fury Gold and Aftermath Silver Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.41-4.05-2.69-1.33-0.021.32.654.05.356.7 0.0150.0200.0250.0300.035
JavaScript chart by amCharts 3.21.15FURY AAGFF
       Returns  

Pair Trading with Fury Gold and Aftermath Silver

The main advantage of trading using opposite Fury Gold and Aftermath Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fury Gold position performs unexpectedly, Aftermath Silver 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 Aftermath Silver will offset losses from the drop in Aftermath Silver's long position.
The idea behind Fury Gold Mines and Aftermath Silver 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.

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