Correlation Between Hycroft Mining and Orla Mining
Can any of the company-specific risk be diversified away by investing in both Hycroft Mining 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 Hycroft Mining and Orla Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hycroft Mining Holding and Orla Mining, you can compare the effects of market volatilities on Hycroft Mining 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 Hycroft Mining with a short position of Orla Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hycroft Mining and Orla Mining.
Diversification Opportunities for Hycroft Mining and Orla Mining
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hycroft and Orla is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Hycroft Mining Holding and Orla Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orla Mining and Hycroft Mining 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 Hycroft Mining Holding 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 Hycroft Mining i.e., Hycroft Mining and Orla Mining go up and down completely randomly.
Pair Corralation between Hycroft Mining and Orla Mining
Assuming the 90 days horizon Hycroft Mining Holding is expected to generate 3.02 times more return on investment than Orla Mining. However, Hycroft Mining is 3.02 times more volatile than Orla Mining. It trades about 0.22 of its potential returns per unit of risk. Orla Mining is currently generating about 0.19 per unit of risk. If you would invest 1.30 in Hycroft Mining Holding on November 1, 2024 and sell it today you would earn a total of 0.50 from holding Hycroft Mining Holding or generate 38.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hycroft Mining Holding vs. Orla Mining
Performance |
| Timeline |
| Hycroft Mining Holding |
| Orla Mining |
Hycroft Mining and Orla Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hycroft Mining and Orla Mining
The main advantage of trading using opposite Hycroft Mining and Orla Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hycroft Mining 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.| Hycroft Mining vs. Hycroft Mining Holding | Hycroft Mining vs. Hycroft Mining Holding | Hycroft Mining vs. HighPeak Energy | Hycroft Mining vs. Lixte Biotechnology Holdings |
| 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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