Correlation Between F3 Uranium and Traction Uranium

Can any of the company-specific risk be diversified away by investing in both F3 Uranium and Traction Uranium 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 F3 Uranium and Traction Uranium into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between F3 Uranium Corp and Traction Uranium Corp, you can compare the effects of market volatilities on F3 Uranium and Traction Uranium 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 F3 Uranium with a short position of Traction Uranium. Check out your portfolio center. Please also check ongoing floating volatility patterns of F3 Uranium and Traction Uranium.

Diversification Opportunities for F3 Uranium and Traction Uranium

-0.29

Correlation Coefficient

F3 Uranium  Traction Uranium

Very good diversification

The 3 months correlation between FUUFF and Traction is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding F3 Uranium Corp and Traction Uranium Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Traction Uranium Corp and F3 Uranium 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 F3 Uranium Corp are associated (or correlated) with Traction Uranium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Traction Uranium Corp has no effect on the direction of F3 Uranium i.e., F3 Uranium and Traction Uranium go up and down completely randomly.

Pair Corralation between F3 Uranium and Traction Uranium

Assuming the 90 days horizon F3 Uranium Corp is expected to under-perform the Traction Uranium. But the otc stock apears to be less risky and, when comparing its historical volatility, F3 Uranium Corp is 2.87 times less risky than Traction Uranium. The otc stock trades about -0.05 of its potential returns per unit of risk. The Traction Uranium Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  23.00  in Traction Uranium Corp on December 27, 2024 and sell it today you would lose (3.00) from holding Traction Uranium Corp or give up 13.04% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

F3 Uranium Corp  vs.  Traction Uranium Corp

F3 Uranium Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days F3 Uranium Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Traction Uranium Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Traction Uranium Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Traction Uranium reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with F3 Uranium and Traction Uranium

The main advantage of trading using opposite F3 Uranium and Traction Uranium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if F3 Uranium position performs unexpectedly, Traction Uranium 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 Traction Uranium will offset losses from the drop in Traction Uranium's long position.

The idea behind F3 Uranium Corp and Traction Uranium 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.