Correlation Between Argo Gold and Orogen Royalties
Can any of the company-specific risk be diversified away by investing in both Argo Gold and Orogen Royalties 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 Argo Gold and Orogen Royalties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argo Gold and Orogen Royalties, you can compare the effects of market volatilities on Argo Gold and Orogen Royalties 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 Argo Gold with a short position of Orogen Royalties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Gold and Orogen Royalties.
Diversification Opportunities for Argo Gold and Orogen Royalties
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Argo and Orogen is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Argo Gold and Orogen Royalties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orogen Royalties and Argo 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 Argo Gold are associated (or correlated) with Orogen Royalties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orogen Royalties has no effect on the direction of Argo Gold i.e., Argo Gold and Orogen Royalties go up and down completely randomly.
Pair Corralation between Argo Gold and Orogen Royalties
Assuming the 90 days horizon Argo Gold is expected to generate 2.35 times more return on investment than Orogen Royalties. However, Argo Gold is 2.35 times more volatile than Orogen Royalties. It trades about 0.06 of its potential returns per unit of risk. Orogen Royalties is currently generating about -0.12 per unit of risk. If you would invest 5.30 in Argo Gold on September 13, 2024 and sell it today you would earn a total of 0.40 from holding Argo Gold or generate 7.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Argo Gold vs. Orogen Royalties
Performance |
| Timeline |
| Argo Gold |
| Orogen Royalties |
Argo Gold and Orogen Royalties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argo Gold and Orogen Royalties
The main advantage of trading using opposite Argo Gold and Orogen Royalties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argo Gold position performs unexpectedly, Orogen Royalties 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 Orogen Royalties will offset losses from the drop in Orogen Royalties' long position.| Argo Gold vs. Blue Star Gold | Argo Gold vs. Angkor Resources Corp | Argo Gold vs. Advance Gold Corp | Argo Gold vs. Advance United Holdings |
| Orogen Royalties vs. Precipitate Gold Corp | Orogen Royalties vs. Sailfish Royalty Corp | Orogen Royalties vs. Hummingbird Resources PLC | Orogen Royalties vs. Almadex Minerals |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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