Correlation Between Founders Metals and Serabi Gold
Can any of the company-specific risk be diversified away by investing in both Founders Metals and Serabi 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 Founders Metals and Serabi Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Founders Metals and Serabi Gold PLC, you can compare the effects of market volatilities on Founders Metals and Serabi 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 Founders Metals with a short position of Serabi Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Founders Metals and Serabi Gold.
Diversification Opportunities for Founders Metals and Serabi Gold
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Founders and Serabi is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Founders Metals and Serabi Gold PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Serabi Gold PLC and Founders Metals 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 Founders Metals are associated (or correlated) with Serabi Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Serabi Gold PLC has no effect on the direction of Founders Metals i.e., Founders Metals and Serabi Gold go up and down completely randomly.
Pair Corralation between Founders Metals and Serabi Gold
Assuming the 90 days horizon Founders Metals is expected to generate 0.96 times more return on investment than Serabi Gold. However, Founders Metals is 1.04 times less risky than Serabi Gold. It trades about 0.13 of its potential returns per unit of risk. Serabi Gold PLC is currently generating about 0.11 per unit of risk. If you would invest 226.00 in Founders Metals on August 16, 2025 and sell it today you would earn a total of 77.00 from holding Founders Metals or generate 34.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Founders Metals vs. Serabi Gold PLC
Performance |
| Timeline |
| Founders Metals |
| Serabi Gold PLC |
Founders Metals and Serabi Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Founders Metals and Serabi Gold
The main advantage of trading using opposite Founders Metals and Serabi Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Founders Metals position performs unexpectedly, Serabi 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 Serabi Gold will offset losses from the drop in Serabi Gold's long position.| Founders Metals vs. Sitka Gold Corp | Founders Metals vs. Anglo Asian Mining | Founders Metals vs. First Mining Gold | Founders Metals vs. Thesis Gold |
| Serabi Gold vs. Monument Mining Limited | Serabi Gold vs. Goldgroup Mining | Serabi Gold vs. Liberty Gold Corp | Serabi Gold vs. Amex Exploration |
Check out your portfolio center.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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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