Correlation Between Getchell Gold and Omai Gold
Can any of the company-specific risk be diversified away by investing in both Getchell Gold and Omai 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 Getchell Gold and Omai Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getchell Gold Corp and Omai Gold Mines, you can compare the effects of market volatilities on Getchell Gold and Omai 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 Getchell Gold with a short position of Omai Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getchell Gold and Omai Gold.
Diversification Opportunities for Getchell Gold and Omai Gold
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Getchell and Omai is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Getchell Gold Corp and Omai Gold Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omai Gold Mines and Getchell 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 Getchell Gold Corp are associated (or correlated) with Omai Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omai Gold Mines has no effect on the direction of Getchell Gold i.e., Getchell Gold and Omai Gold go up and down completely randomly.
Pair Corralation between Getchell Gold and Omai Gold
Assuming the 90 days horizon Getchell Gold is expected to generate 1.91 times less return on investment than Omai Gold. In addition to that, Getchell Gold is 1.15 times more volatile than Omai Gold Mines. It trades about 0.02 of its total potential returns per unit of risk. Omai Gold Mines is currently generating about 0.05 per unit of volatility. If you would invest 10.00 in Omai Gold Mines on September 3, 2024 and sell it today you would earn a total of 2.00 from holding Omai Gold Mines or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getchell Gold Corp vs. Omai Gold Mines
Performance |
| Timeline |
| Getchell Gold Corp |
| Omai Gold Mines |
Getchell Gold and Omai Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getchell Gold and Omai Gold
The main advantage of trading using opposite Getchell Gold and Omai Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getchell Gold position performs unexpectedly, Omai 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 Omai Gold will offset losses from the drop in Omai Gold's long position.| Getchell Gold vs. Harmony Gold Mining | Getchell Gold vs. SPACE | Getchell Gold vs. T Rowe Price | Getchell Gold vs. Ampleforth |
| Omai Gold vs. Harmony Gold Mining | Omai Gold vs. SPACE | Omai Gold vs. T Rowe Price | Omai Gold vs. Ampleforth |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |