Correlation Between Fury Gold and NorthIsle Copper

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

Diversification Opportunities for Fury Gold and NorthIsle Copper

FuryNorthIsleDiversified AwayFuryNorthIsleDiversified Away100%
0.24
  Correlation Coefficient

Modest diversification

The 3 months correlation between Fury and NorthIsle is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Fury Gold Mines and NorthIsle Copper and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NorthIsle Copper 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 NorthIsle Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NorthIsle Copper has no effect on the direction of Fury Gold i.e., Fury Gold and NorthIsle Copper go up and down completely randomly.

Pair Corralation between Fury Gold and NorthIsle Copper

Given the investment horizon of 90 days Fury Gold is expected to generate 40.36 times less return on investment than NorthIsle Copper. But when comparing it to its historical volatility, Fury Gold Mines is 1.21 times less risky than NorthIsle Copper. It trades about 0.0 of its potential returns per unit of risk. NorthIsle Copper and is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  31.00  in NorthIsle Copper and on November 24, 2024 and sell it today you would earn a total of  11.00  from holding NorthIsle Copper and or generate 35.48% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Fury Gold Mines  vs.  NorthIsle Copper and

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -100102030
JavaScript chart by amCharts 3.21.15FURY NTCPF
       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
NorthIsle Copper 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in NorthIsle Copper and are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, NorthIsle Copper reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.30.350.40.45

Fury Gold and NorthIsle Copper Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.41-4.05-2.69-1.33-0.021.282.633.985.336.68 0.0200.0250.0300.035
JavaScript chart by amCharts 3.21.15FURY NTCPF
       Returns  

Pair Trading with Fury Gold and NorthIsle Copper

The main advantage of trading using opposite Fury Gold and NorthIsle Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fury Gold position performs unexpectedly, NorthIsle Copper 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 NorthIsle Copper will offset losses from the drop in NorthIsle Copper's long position.
The idea behind Fury Gold Mines and NorthIsle Copper and 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.

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