Correlation Between Cabral Gold and Omineca Mining
Can any of the company-specific risk be diversified away by investing in both Cabral Gold and Omineca Mining 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 Cabral Gold and Omineca Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cabral Gold and Omineca Mining and, you can compare the effects of market volatilities on Cabral Gold and Omineca Mining 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 Cabral Gold with a short position of Omineca Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cabral Gold and Omineca Mining.
Diversification Opportunities for Cabral Gold and Omineca Mining
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cabral and Omineca is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Cabral Gold and Omineca Mining and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omineca Mining and Cabral 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 Cabral Gold are associated (or correlated) with Omineca Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omineca Mining has no effect on the direction of Cabral Gold i.e., Cabral Gold and Omineca Mining go up and down completely randomly.
Pair Corralation between Cabral Gold and Omineca Mining
Assuming the 90 days horizon Cabral Gold is expected to under-perform the Omineca Mining. In addition to that, Cabral Gold is 2.3 times more volatile than Omineca Mining and. It trades about -0.02 of its total potential returns per unit of risk. Omineca Mining and is currently generating about 0.03 per unit of volatility. If you would invest 4.50 in Omineca Mining and on August 26, 2024 and sell it today you would earn a total of 0.02 from holding Omineca Mining and or generate 0.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cabral Gold vs. Omineca Mining and
Performance |
| Timeline |
| Cabral Gold |
| Omineca Mining |
Cabral Gold and Omineca Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cabral Gold and Omineca Mining
The main advantage of trading using opposite Cabral Gold and Omineca Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cabral Gold position performs unexpectedly, Omineca Mining 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 Omineca Mining will offset losses from the drop in Omineca Mining's long position.| Cabral Gold vs. Aurion Resources | Cabral Gold vs. Liberty Gold Corp | Cabral Gold vs. Orezone Gold Corp | Cabral Gold vs. Radisson Mining Resources |
| Omineca Mining vs. Aurion Resources | Omineca Mining vs. Liberty Gold Corp | Omineca Mining vs. Orezone Gold Corp | Omineca Mining vs. Radisson Mining Resources |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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