Correlation Between Oroco Resource and Fremont Gold
Can any of the company-specific risk be diversified away by investing in both Oroco Resource and Fremont 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 Oroco Resource and Fremont Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oroco Resource Corp and Fremont Gold, you can compare the effects of market volatilities on Oroco Resource and Fremont 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 Oroco Resource with a short position of Fremont Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oroco Resource and Fremont Gold.
Diversification Opportunities for Oroco Resource and Fremont Gold
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oroco and Fremont is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Oroco Resource Corp and Fremont Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fremont Gold and Oroco Resource 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 Oroco Resource Corp are associated (or correlated) with Fremont Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fremont Gold has no effect on the direction of Oroco Resource i.e., Oroco Resource and Fremont Gold go up and down completely randomly.
Pair Corralation between Oroco Resource and Fremont Gold
Assuming the 90 days horizon Oroco Resource is expected to generate 2.3 times less return on investment than Fremont Gold. But when comparing it to its historical volatility, Oroco Resource Corp is 2.19 times less risky than Fremont Gold. It trades about 0.17 of its potential returns per unit of risk. Fremont Gold is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 9.50 in Fremont Gold on October 25, 2024 and sell it today you would earn a total of 1.50 from holding Fremont Gold or generate 15.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 47.37% |
| Values | Daily Returns |
Oroco Resource Corp vs. Fremont Gold
Performance |
| Timeline |
| Oroco Resource Corp |
| Fremont Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Oroco Resource and Fremont Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oroco Resource and Fremont Gold
The main advantage of trading using opposite Oroco Resource and Fremont Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oroco Resource position performs unexpectedly, Fremont 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 Fremont Gold will offset losses from the drop in Fremont Gold's long position.| Oroco Resource vs. Los Andes Copper | Oroco Resource vs. Thor Explorations | Oroco Resource vs. K2 Gold | Oroco Resource vs. Sego Resources |
| Fremont Gold vs. Tesoro Minerals Corp | Fremont Gold vs. Palamina Corp | Fremont Gold vs. Empire Metals Corp |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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