Correlation Analysis Between FALCO RESOURCES and BHP GROUP

This module allows you to analyze existing cross correlation between FALCO RESOURCES LTD and BHP GROUP LTD. You can compare the effects of market volatilities on FALCO RESOURCES and BHP GROUP 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 FALCO RESOURCES with a short position of BHP GROUP. See also your portfolio center. Please also check ongoing floating volatility patterns of FALCO RESOURCES and BHP GROUP.
Horizon     30 Days    Login   to change
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Comparative Performance

FALCO RESOURCES LTD  
33

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in FALCO RESOURCES LTD are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days. In spite of rather unsteady fundamental drivers, FALCO RESOURCES exhibited solid returns over the last few months and may actually be approaching a breakup point.
BHP GROUP LTD  
00

Risk-Adjusted Performance

Over the last 30 days BHP GROUP LTD has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's fundamental drivers remain sound and the ongoing tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

FALCO RESOURCES and BHP GROUP Volatility Contrast

 Predicted Return Density 
      Returns 

FALCO RESOURCES LTD  vs.  BHP GROUP LTD

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, FALCO RESOURCES LTD is expected to generate 3.8 times more return on investment than BHP GROUP. However, FALCO RESOURCES is 3.8 times more volatile than BHP GROUP LTD. It trades about 0.05 of its potential returns per unit of risk. BHP GROUP LTD is currently generating about -0.07 per unit of risk. If you would invest  18.20  in FALCO RESOURCES LTD on September 23, 2019 and sell it today you would lose (0.20)  from holding FALCO RESOURCES LTD or give up 1.1% of portfolio value over 30 days.

Pair Corralation between FALCO RESOURCES and BHP GROUP

-0.12
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for FALCO RESOURCES and BHP GROUP

FALCO RESOURCES LTD diversification synergy

Good diversification

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