Correlation Between FMC and Allied Gold
Can any of the company-specific risk be diversified away by investing in both FMC and Allied 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 FMC and Allied Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FMC Corporation and Allied Gold, you can compare the effects of market volatilities on FMC and Allied 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 FMC with a short position of Allied Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of FMC and Allied Gold.
Diversification Opportunities for FMC and Allied Gold
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between FMC and Allied is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding FMC Corp. and Allied Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allied Gold and FMC 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 FMC Corporation are associated (or correlated) with Allied Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allied Gold has no effect on the direction of FMC i.e., FMC and Allied Gold go up and down completely randomly.
Pair Corralation between FMC and Allied Gold
Considering the 90-day investment horizon FMC Corporation is expected to under-perform the Allied Gold. In addition to that, FMC is 1.57 times more volatile than Allied Gold. It trades about -0.2 of its total potential returns per unit of risk. Allied Gold is currently generating about 0.19 per unit of volatility. If you would invest 1,425 in Allied Gold on September 4, 2025 and sell it today you would earn a total of 768.00 from holding Allied Gold or generate 53.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FMC Corp. vs. Allied Gold
Performance |
| Timeline |
| FMC Corporation |
| Allied Gold |
FMC and Allied Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FMC and Allied Gold
The main advantage of trading using opposite FMC and Allied Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FMC position performs unexpectedly, Allied 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 Allied Gold will offset losses from the drop in Allied Gold's long position.| FMC vs. Forum Mobile | FMC vs. Wireless Xcessories Group | FMC vs. ARIA Wireless Systems | FMC vs. Spirent Communications plc |
| Allied Gold vs. Laurentian Bank of | Allied Gold vs. BBB Foods | Allied Gold vs. iA Financial | Allied Gold vs. AmTrust Financial Services |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |