Correlation Between Lundin Gold and Ophir Gold
Can any of the company-specific risk be diversified away by investing in both Lundin 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 Lundin 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 Lundin Gold and Ophir Gold Corp, you can compare the effects of market volatilities on Lundin 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 Lundin Gold with a short position of Ophir Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Gold and Ophir Gold.
Diversification Opportunities for Lundin Gold and Ophir Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lundin and Ophir is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lundin 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 Lundin 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 Lundin 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 Lundin Gold i.e., Lundin Gold and Ophir Gold go up and down completely randomly.
Pair Corralation between Lundin Gold and Ophir Gold
If you would invest 39.00 in Ophir Gold Corp on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Ophir Gold Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Lundin Gold vs. Ophir Gold Corp
Performance |
| Timeline |
| Lundin Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Ophir Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lundin Gold and Ophir Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Gold and Ophir Gold
The main advantage of trading using opposite Lundin Gold and Ophir Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin 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.| Lundin Gold vs. Sirios Resources | Lundin Gold vs. Q2 Metals Corp | Lundin Gold vs. Tectonic Metals | Lundin Gold vs. Angus Gold |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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