Correlation Between Ffuyux and Precious Metals

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

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

Diversification Opportunities for Ffuyux and Precious Metals

0.61

Correlation Coefficient

Ffuyux  Precious Metals

Poor diversification

The 3 months correlation between Ffuyux and Precious is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Ffuyux and Precious Metals Ultrasector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Precious Metals Ultr and Ffuyux 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 Ffuyux are associated (or correlated) with Precious Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Precious Metals Ultr has no effect on the direction of Ffuyux i.e., Ffuyux and Precious Metals go up and down completely randomly.

Pair Corralation between Ffuyux and Precious Metals

Assuming the 90 days trading horizon Ffuyux is expected to generate 3.81 times less return on investment than Precious Metals. But when comparing it to its historical volatility, Ffuyux is 3.03 times less risky than Precious Metals. It trades about 0.17 of its potential returns per unit of risk. Precious Metals Ultrasector is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  7,022  in Precious Metals Ultrasector on May 11, 2025 and sell it today you would earn a total of  3,145  from holding Precious Metals Ultrasector or generate 44.79% return on investment over 90 days.

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

Ffuyux  vs.  Precious Metals Ultrasector

Ffuyux

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ffuyux are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Ffuyux may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Precious Metals Ultr

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Precious Metals Ultrasector are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Precious Metals showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ffuyux and Precious Metals

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

The idea behind Ffuyux and Precious Metals Ultrasector 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.