Correlation Between Fortitude Gold and GoldMining
Can any of the company-specific risk be diversified away by investing in both Fortitude Gold and GoldMining 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 Fortitude Gold and GoldMining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortitude Gold Corp and GoldMining, you can compare the effects of market volatilities on Fortitude Gold and GoldMining 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 Fortitude Gold with a short position of GoldMining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortitude Gold and GoldMining.
Diversification Opportunities for Fortitude Gold and GoldMining
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fortitude and GoldMining is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Fortitude Gold Corp and GoldMining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoldMining and Fortitude Gold 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 Fortitude Gold Corp are associated (or correlated) with GoldMining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GoldMining has no effect on the direction of Fortitude Gold i.e., Fortitude Gold and GoldMining go up and down completely randomly.
Pair Corralation between Fortitude Gold and GoldMining
Given the investment horizon of 90 days Fortitude Gold Corp is expected to under-perform the GoldMining. In addition to that, Fortitude Gold is 1.46 times more volatile than GoldMining. It trades about -0.18 of its total potential returns per unit of risk. GoldMining is currently generating about -0.06 per unit of volatility. If you would invest 86.00 in GoldMining on March 13, 2025 and sell it today you would lose (9.00) from holding GoldMining or give up 10.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fortitude Gold Corp vs. GoldMining
Performance |
| Timeline |
| Fortitude Gold Corp |
| GoldMining |
Fortitude Gold and GoldMining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortitude Gold and GoldMining
The main advantage of trading using opposite Fortitude Gold and GoldMining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortitude Gold position performs unexpectedly, GoldMining 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 GoldMining will offset losses from the drop in GoldMining's long position.| Fortitude Gold vs. Generationome Properties | Fortitude Gold vs. Gold Resource | Fortitude Gold vs. PermRock Royalty Trust | Fortitude Gold vs. Ellington Residential Mortgage |
| GoldMining vs. Gold Royalty Corp | GoldMining vs. Uranium Royalty Corp | GoldMining vs. Metalla Royalty Streaming | GoldMining vs. Equinox Gold Corp |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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