Correlation Between Reyna Silver and Fury Gold

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

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

Diversification Opportunities for Reyna Silver and Fury Gold

0.84

Correlation Coefficient

Reyna Silver  Fury Gold

Very poor diversification

The 3 months correlation between Reyna and Fury is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Reyna Silver 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 Reyna Silver 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 Reyna Silver 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 Reyna Silver i.e., Reyna Silver and Fury Gold go up and down completely randomly.

Pair Corralation between Reyna Silver and Fury Gold

Assuming the 90 days trading horizon Reyna Silver Corp is expected to generate 2.03 times more return on investment than Fury Gold. However, Reyna Silver is 2.03 times more volatile than Fury Gold Mines. It trades about 0.17 of its potential returns per unit of risk. Fury Gold Mines is currently generating about 0.12 per unit of risk. If you would invest  6.50  in Reyna Silver Corp on May 7, 2025 and sell it today you would earn a total of  6.50  from holding Reyna Silver Corp or generate 100.0% return on investment over 90 days.

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

Reyna Silver Corp  vs.  Fury Gold Mines

Reyna Silver Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Reyna Silver Corp are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal essential indicators, Reyna Silver showed solid returns over the last few months and may actually be approaching a breakup point.

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 9 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Fury Gold displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Reyna Silver and Fury Gold

The main advantage of trading using opposite Reyna Silver and Fury Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Reyna Silver 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 Reyna Silver 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.