Correlation Between Endurance Gold and Ophir Gold
Can any of the company-specific risk be diversified away by investing in both Endurance Gold and Ophir Gold 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 Endurance Gold and Ophir Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Endurance Gold and Ophir Gold Corp, you can compare the effects of market volatilities on Endurance Gold and Ophir Gold 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 Endurance Gold with a short position of Ophir Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endurance Gold and Ophir Gold.
Diversification Opportunities for Endurance Gold and Ophir Gold
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Endurance and Ophir is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Endurance Gold and Ophir Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ophir Gold Corp and Endurance 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 Endurance Gold are associated (or correlated) with Ophir Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ophir Gold Corp has no effect on the direction of Endurance Gold i.e., Endurance Gold and Ophir Gold go up and down completely randomly.
Pair Corralation between Endurance Gold and Ophir Gold
Assuming the 90 days horizon Endurance Gold is expected to under-perform the Ophir Gold. But the pink sheet apears to be less risky and, when comparing its historical volatility, Endurance Gold is 1.75 times less risky than Ophir Gold. The pink sheet trades about -0.01 of its potential returns per unit of risk. The Ophir Gold Corp is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 9.44 in Ophir Gold Corp on August 26, 2024 and sell it today you would earn a total of 29.56 from holding Ophir Gold Corp or generate 313.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 28.93% |
| Values | Daily Returns |
Endurance Gold vs. Ophir Gold Corp
Performance |
| Timeline |
| Endurance Gold |
| Ophir Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Endurance Gold and Ophir Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endurance Gold and Ophir Gold
The main advantage of trading using opposite Endurance Gold and Ophir Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endurance Gold position performs unexpectedly, Ophir Gold 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 Ophir Gold will offset losses from the drop in Ophir Gold's long position.| Endurance Gold vs. Aurion Resources | Endurance Gold vs. Liberty Gold Corp | Endurance Gold vs. Orezone Gold Corp | Endurance Gold vs. Radisson Mining Resources |
| Ophir Gold vs. White Gold Corp | Ophir Gold vs. Puma Exploration | Ophir Gold vs. Endurance Gold | Ophir Gold vs. Red Pine 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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