Correlation Between Alphamin Resources and Fury Gold

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

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

Diversification Opportunities for Alphamin Resources and Fury Gold

0.04

Correlation Coefficient

Alphamin Resources  Fury Gold

Significant diversification

The 3 months correlation between Alphamin and Fury is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Alphamin Resources Corp 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 Alphamin 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 Alphamin Resources Corp 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 Alphamin Resources i.e., Alphamin Resources and Fury Gold go up and down completely randomly.

Pair Corralation between Alphamin Resources and Fury Gold

Assuming the 90 days horizon Alphamin Resources is expected to generate 30.66 times less return on investment than Fury Gold. But when comparing it to its historical volatility, Alphamin Resources Corp is 1.34 times less risky than Fury Gold. It trades about 0.01 of its potential returns per unit of risk. Fury Gold Mines is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  37.00  in Fury Gold Mines on May 7, 2025 and sell it today you would earn a total of  14.00  from holding Fury Gold Mines or generate 37.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Alphamin Resources Corp  vs.  Fury Gold Mines

Alphamin Resources Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Alphamin Resources Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking indicators, Alphamin Resources is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Fury Gold Mines

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fury Gold Mines are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Fury Gold showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Alphamin Resources and Fury Gold

The main advantage of trading using opposite Alphamin Resources and Fury Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphamin Resources 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.

The idea behind Alphamin Resources Corp and Fury Gold Mines 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.