Correlation Between Probe Metals and Falcon Metals
Can any of the company-specific risk be diversified away by investing in both Probe Metals and Falcon 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 Probe Metals and Falcon Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Probe Metals and Falcon Metals Limited, you can compare the effects of market volatilities on Probe Metals and Falcon 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 Probe Metals with a short position of Falcon Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Probe Metals and Falcon Metals.
Diversification Opportunities for Probe Metals and Falcon Metals
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Probe and Falcon is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Probe Metals and Falcon Metals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Falcon Metals Limited and Probe 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 Probe Metals are associated (or correlated) with Falcon Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Falcon Metals Limited has no effect on the direction of Probe Metals i.e., Probe Metals and Falcon Metals go up and down completely randomly.
Pair Corralation between Probe Metals and Falcon Metals
Assuming the 90 days horizon Probe Metals is expected to generate 301.85 times less return on investment than Falcon Metals. But when comparing it to its historical volatility, Probe Metals is 210.57 times less risky than Falcon Metals. It trades about 0.09 of its potential returns per unit of risk. Falcon Metals Limited is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 0.30 in Falcon Metals Limited on November 29, 2025 and sell it today you would earn a total of 49.70 from holding Falcon Metals Limited or generate 16566.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 60.66% |
| Values | Daily Returns |
Probe Metals vs. Falcon Metals Limited
Performance |
| Timeline |
| Probe Metals |
Risk-Adjusted Performance
Mild
Weak | Strong |
| Falcon Metals Limited |
Probe Metals and Falcon Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Probe Metals and Falcon Metals
The main advantage of trading using opposite Probe Metals and Falcon Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Probe Metals position performs unexpectedly, Falcon 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 Falcon Metals will offset losses from the drop in Falcon Metals' long position.| Probe Metals vs. Omai Gold Mines | Probe Metals vs. Rusoro Mining | Probe Metals vs. Thor Explorations | Probe Metals vs. Rare Element Resources |
| Falcon Metals vs. Gander Gold | Falcon Metals vs. Sage Gold | Falcon Metals vs. Victoria Gold Corp | Falcon Metals vs. Candelaria Mining 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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