Correlation Between BHP Group and Fury Gold
Can any of the company-specific risk be diversified away by investing in both BHP Group and Fury 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 BHP Group and Fury Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BHP Group Limited and Fury Gold Mines, you can compare the effects of market volatilities on BHP Group and Fury 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 BHP Group with a short position of Fury Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of BHP Group and Fury Gold.
Diversification Opportunities for BHP Group and Fury Gold
Pay attention - limited upside
The 3 months correlation between BHP and Fury is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BHP Group Limited and Fury Gold Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fury Gold Mines and BHP Group 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 BHP Group Limited are associated (or correlated) with Fury Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fury Gold Mines has no effect on the direction of BHP Group i.e., BHP Group and Fury Gold go up and down completely randomly.
Pair Corralation between BHP Group and Fury Gold
If you would invest 5,778 in BHP Group Limited on January 20, 2024 and sell it today you would earn a total of 21.00 from holding BHP Group Limited or generate 0.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
BHP Group Limited vs. Fury Gold Mines
Performance |
Timeline |
BHP Group Limited |
Fury Gold Mines |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BHP Group and Fury Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BHP Group and Fury Gold
The main advantage of trading using opposite BHP Group and Fury Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BHP Group position performs unexpectedly, Fury 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 Fury Gold will offset losses from the drop in Fury Gold's long position.BHP Group vs. Vale SA ADR | BHP Group vs. Teck Resources Ltd | BHP Group vs. Lithium Americas Corp | BHP Group vs. MP Materials Corp |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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