Correlation Between Orogen Royalties and Angkor Resources
Can any of the company-specific risk be diversified away by investing in both Orogen Royalties and Angkor Resources 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 Orogen Royalties and Angkor Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orogen Royalties and Angkor Resources Corp, you can compare the effects of market volatilities on Orogen Royalties and Angkor Resources 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 Orogen Royalties with a short position of Angkor Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orogen Royalties and Angkor Resources.
Diversification Opportunities for Orogen Royalties and Angkor Resources
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Orogen and Angkor is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Orogen Royalties and Angkor Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angkor Resources Corp and Orogen Royalties 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 Orogen Royalties are associated (or correlated) with Angkor Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angkor Resources Corp has no effect on the direction of Orogen Royalties i.e., Orogen Royalties and Angkor Resources go up and down completely randomly.
Pair Corralation between Orogen Royalties and Angkor Resources
Assuming the 90 days horizon Orogen Royalties is expected to under-perform the Angkor Resources. But the pink sheet apears to be less risky and, when comparing its historical volatility, Orogen Royalties is 1.93 times less risky than Angkor Resources. The pink sheet trades about -0.06 of its potential returns per unit of risk. The Angkor Resources Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 7.00 in Angkor Resources Corp on September 12, 2024 and sell it today you would lose (0.05) from holding Angkor Resources Corp or give up 0.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Orogen Royalties vs. Angkor Resources Corp
Performance |
| Timeline |
| Orogen Royalties |
| Angkor Resources Corp |
Orogen Royalties and Angkor Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orogen Royalties and Angkor Resources
The main advantage of trading using opposite Orogen Royalties and Angkor Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orogen Royalties position performs unexpectedly, Angkor Resources 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 Angkor Resources will offset losses from the drop in Angkor Resources' long position.| Orogen Royalties vs. Revival Gold | Orogen Royalties vs. Galiano Gold | Orogen Royalties vs. US Gold Corp | Orogen Royalties vs. HUMANA INC |
| Angkor Resources vs. Advantage Solutions | Angkor Resources vs. Atlas Corp | Angkor Resources vs. PureCycle Technologies | Angkor Resources vs. WM Technology |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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