Correlation Between Contact Gold and Orogen Royalties
Can any of the company-specific risk be diversified away by investing in both Contact 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 Contact 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 Contact Gold Corp and Orogen Royalties, you can compare the effects of market volatilities on Contact 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 Contact Gold with a short position of Orogen Royalties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contact Gold and Orogen Royalties.
Diversification Opportunities for Contact Gold and Orogen Royalties
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Contact and Orogen is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Contact Gold Corp and Orogen Royalties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orogen Royalties and Contact 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 Contact Gold Corp 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 Contact Gold i.e., Contact Gold and Orogen Royalties go up and down completely randomly.
Pair Corralation between Contact Gold and Orogen Royalties
If you would invest 1.38 in Contact Gold Corp on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Contact Gold Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Contact Gold Corp vs. Orogen Royalties
Performance |
| Timeline |
| Contact Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Orogen Royalties |
Contact Gold and Orogen Royalties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contact Gold and Orogen Royalties
The main advantage of trading using opposite Contact Gold and Orogen Royalties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contact 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.| Contact Gold vs. Fremont Gold | Contact Gold vs. Norsemont Mining | Contact Gold vs. Hummingbird Resources PLC | Contact Gold vs. Tudor Gold Corp |
| Orogen Royalties vs. Revival Gold | Orogen Royalties vs. Galiano Gold | Orogen Royalties vs. US Gold Corp | Orogen Royalties vs. HUMANA INC |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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