Correlation Between Equinox Gold and Orla Mining
Can any of the company-specific risk be diversified away by investing in both Equinox Gold and Orla 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 Equinox Gold and Orla Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equinox Gold Corp and Orla Mining, you can compare the effects of market volatilities on Equinox Gold and Orla 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 Equinox Gold with a short position of Orla Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equinox Gold and Orla Mining.
Diversification Opportunities for Equinox Gold and Orla Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Equinox and Orla is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Equinox Gold Corp and Orla Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orla Mining and Equinox 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 Equinox Gold Corp are associated (or correlated) with Orla Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orla Mining has no effect on the direction of Equinox Gold i.e., Equinox Gold and Orla Mining go up and down completely randomly.
Pair Corralation between Equinox Gold and Orla Mining
Considering the 90-day investment horizon Equinox Gold Corp is expected to generate 0.95 times more return on investment than Orla Mining. However, Equinox Gold Corp is 1.05 times less risky than Orla Mining. It trades about -0.03 of its potential returns per unit of risk. Orla Mining is currently generating about -0.05 per unit of risk. If you would invest 584.00 in Equinox Gold Corp on August 30, 2024 and sell it today you would lose (24.00) from holding Equinox Gold Corp or give up 4.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Equinox Gold Corp vs. Orla Mining
Performance |
| Timeline |
| Equinox Gold Corp |
| Orla Mining |
Equinox Gold and Orla Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equinox Gold and Orla Mining
The main advantage of trading using opposite Equinox Gold and Orla Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equinox Gold position performs unexpectedly, Orla 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 Orla Mining will offset losses from the drop in Orla Mining's long position.| Equinox Gold vs. Coeur Mining | Equinox Gold vs. B2Gold Corp | Equinox Gold vs. Sandstorm Gold Ltd | Equinox Gold vs. Pan American Silver |
| Orla Mining vs. K92 Mining | Orla Mining vs. Equinox Gold Corp | Orla Mining vs. Contango ORE | Orla Mining vs. Sandstorm Gold Ltd |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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