Correlation Between Arbor Metals and Opus One
Can any of the company-specific risk be diversified away by investing in both Arbor Metals and Opus One 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 Arbor Metals and Opus One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arbor Metals Corp and Opus One Resources, you can compare the effects of market volatilities on Arbor Metals and Opus One 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 Arbor Metals with a short position of Opus One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arbor Metals and Opus One.
Diversification Opportunities for Arbor Metals and Opus One
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Arbor and Opus is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Arbor Metals Corp and Opus One Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opus One Resources and Arbor 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 Arbor Metals Corp are associated (or correlated) with Opus One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Opus One Resources has no effect on the direction of Arbor Metals i.e., Arbor Metals and Opus One go up and down completely randomly.
Pair Corralation between Arbor Metals and Opus One
Assuming the 90 days horizon Arbor Metals Corp is expected to under-perform the Opus One. In addition to that, Arbor Metals is 1.3 times more volatile than Opus One Resources. It trades about -0.27 of its total potential returns per unit of risk. Opus One Resources is currently generating about -0.08 per unit of volatility. If you would invest 7.00 in Opus One Resources on January 8, 2025 and sell it today you would lose (0.50) from holding Opus One Resources or give up 7.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Arbor Metals Corp vs. Opus One Resources
Performance |
| Timeline |
| Arbor Metals Corp |
| Opus One Resources |
Arbor Metals and Opus One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arbor Metals and Opus One
The main advantage of trading using opposite Arbor Metals and Opus One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arbor Metals position performs unexpectedly, Opus One 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 Opus One will offset losses from the drop in Opus One's long position.| Arbor Metals vs. Kiplin Metals | Arbor Metals vs. Pure Energy Minerals | Arbor Metals vs. Noram Lithium Corp | Arbor Metals vs. Minnova Corp |
| Opus One vs. Empire Metals Corp | Opus One vs. Homeland Uranium Corp | Opus One vs. Leons Furniture Limited | Opus One vs. Andean Precious Metals |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |