Correlation Between US GoldMining and FutureFuel Corp
Can any of the company-specific risk be diversified away by investing in both US GoldMining and FutureFuel Corp 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 US GoldMining and FutureFuel Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US GoldMining Common and FutureFuel Corp, you can compare the effects of market volatilities on US GoldMining and FutureFuel Corp 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 US GoldMining with a short position of FutureFuel Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of US GoldMining and FutureFuel Corp.
Diversification Opportunities for US GoldMining and FutureFuel Corp
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between USGO and FutureFuel is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding US GoldMining Common and FutureFuel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FutureFuel Corp and US GoldMining 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 US GoldMining Common are associated (or correlated) with FutureFuel Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FutureFuel Corp has no effect on the direction of US GoldMining i.e., US GoldMining and FutureFuel Corp go up and down completely randomly.
Pair Corralation between US GoldMining and FutureFuel Corp
Given the investment horizon of 90 days US GoldMining Common is expected to generate 1.77 times more return on investment than FutureFuel Corp. However, US GoldMining is 1.77 times more volatile than FutureFuel Corp. It trades about 0.11 of its potential returns per unit of risk. FutureFuel Corp is currently generating about 0.03 per unit of risk. If you would invest 773.00 in US GoldMining Common on August 13, 2025 and sell it today you would earn a total of 255.00 from holding US GoldMining Common or generate 32.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
US GoldMining Common vs. FutureFuel Corp
Performance |
| Timeline |
| US GoldMining Common |
| FutureFuel Corp |
US GoldMining and FutureFuel Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US GoldMining and FutureFuel Corp
The main advantage of trading using opposite US GoldMining and FutureFuel Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US GoldMining position performs unexpectedly, FutureFuel Corp 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 FutureFuel Corp will offset losses from the drop in FutureFuel Corp's long position.| US GoldMining vs. Westwater Resources | US GoldMining vs. Nova Minerals Limited | US GoldMining vs. BioHarvest Sciences Common | US GoldMining vs. American Vanguard |
| FutureFuel Corp vs. Core Molding Technologies | FutureFuel Corp vs. BioHarvest Sciences Common | FutureFuel Corp vs. Friedman Industries Common | FutureFuel Corp vs. Tanzanian Royalty 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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