Correlation Between Mako Mining and Ocumetics Technology
Can any of the company-specific risk be diversified away by investing in both Mako Mining and Ocumetics Technology 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 Mako Mining and Ocumetics Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mako Mining Corp and Ocumetics Technology Corp, you can compare the effects of market volatilities on Mako Mining and Ocumetics Technology 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 Mako Mining with a short position of Ocumetics Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mako Mining and Ocumetics Technology.
Diversification Opportunities for Mako Mining and Ocumetics Technology
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mako and Ocumetics is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Mako Mining Corp and Ocumetics Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocumetics Technology Corp and Mako 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 Mako Mining Corp are associated (or correlated) with Ocumetics Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocumetics Technology Corp has no effect on the direction of Mako Mining i.e., Mako Mining and Ocumetics Technology go up and down completely randomly.
Pair Corralation between Mako Mining and Ocumetics Technology
Assuming the 90 days horizon Mako Mining Corp is expected to generate 0.99 times more return on investment than Ocumetics Technology. However, Mako Mining Corp is 1.01 times less risky than Ocumetics Technology. It trades about 0.06 of its potential returns per unit of risk. Ocumetics Technology Corp is currently generating about 0.01 per unit of risk. If you would invest 130.00 in Mako Mining Corp on August 30, 2024 and sell it today you would earn a total of 172.00 from holding Mako Mining Corp or generate 132.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mako Mining Corp vs. Ocumetics Technology Corp
Performance |
| Timeline |
| Mako Mining Corp |
| Ocumetics Technology Corp |
Mako Mining and Ocumetics Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mako Mining and Ocumetics Technology
The main advantage of trading using opposite Mako Mining and Ocumetics Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mako Mining position performs unexpectedly, Ocumetics Technology 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 Ocumetics Technology will offset losses from the drop in Ocumetics Technology's long position.| Mako Mining vs. Thor Explorations | Mako Mining vs. K2 Gold | Mako Mining vs. Loncor Resources | Mako Mining vs. Sarama Resource |
| Ocumetics Technology vs. Solar Alliance Energy | Ocumetics Technology vs. Braille Energy Systems | Ocumetics Technology vs. MedMira | Ocumetics Technology vs. Lite Access Technologies |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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