Correlation Between Gold Fields and Flowery Gold
Can any of the company-specific risk be diversified away by investing in both Gold Fields and Flowery Gold 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 Gold Fields and Flowery Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gold Fields Ltd and Flowery Gold Mines, you can compare the effects of market volatilities on Gold Fields and Flowery Gold 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 Gold Fields with a short position of Flowery Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Fields and Flowery Gold.
Diversification Opportunities for Gold Fields and Flowery Gold
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gold and Flowery is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Gold Fields Ltd and Flowery Gold Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flowery Gold Mines and Gold Fields 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 Gold Fields Ltd are associated (or correlated) with Flowery Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flowery Gold Mines has no effect on the direction of Gold Fields i.e., Gold Fields and Flowery Gold go up and down completely randomly.
Pair Corralation between Gold Fields and Flowery Gold
If you would invest 1,738 in Gold Fields Ltd on December 3, 2024 and sell it today you would earn a total of 103.00 from holding Gold Fields Ltd or generate 5.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.24% |
Values | Daily Returns |
Gold Fields Ltd vs. Flowery Gold Mines
Performance |
Timeline |
Gold Fields |
Flowery Gold Mines |
Gold Fields and Flowery Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gold Fields and Flowery Gold
The main advantage of trading using opposite Gold Fields and Flowery Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Fields position performs unexpectedly, Flowery Gold 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 Flowery Gold will offset losses from the drop in Flowery Gold's long position.Gold Fields vs. Agnico Eagle Mines | Gold Fields vs. Kinross Gold | Gold Fields vs. Harmony Gold Mining | Gold Fields vs. Franco Nevada |
Flowery Gold vs. CVS Health Corp | Flowery Gold vs. Cedar Realty Trust | Flowery Gold vs. Vital Farms | Flowery Gold vs. United Natural Foods |
Check out your portfolio center.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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |