Correlation Between First Colombia and Puration

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

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

Diversification Opportunities for First Colombia and Puration

0.0

Correlation Coefficient

First Colombia  Puration

Pay attention - limited upside

The 3 months correlation between First and Puration is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Colombia Gold and Puration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puration and First Colombia 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 First Colombia Gold are associated (or correlated) with Puration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puration has no effect on the direction of First Colombia i.e., First Colombia and Puration go up and down completely randomly.

Pair Corralation between First Colombia and Puration

If you would invest  0.00  in First Colombia Gold on May 3, 2025 and sell it today you would earn a total of  0.01  from holding First Colombia Gold or generate 9.223372036854776E16% return on investment over 90 days.

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

First Colombia Gold  vs.  Puration

First Colombia Gold

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in First Colombia Gold are ranked lower than 29 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, First Colombia exhibited solid returns over the last few months and may actually be approaching a breakup point.

Puration

Risk-Adjusted Performance

Very Weak

Over the last 90 days Puration has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Puration is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with First Colombia and Puration

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

The idea behind First Colombia Gold and Puration 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.