Correlation Between Orogen Royalties and Gold Fields
Can any of the company-specific risk be diversified away by investing in both Orogen Royalties and Gold Fields 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 Gold Fields into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orogen Royalties and Gold Fields Ltd, you can compare the effects of market volatilities on Orogen Royalties and Gold Fields 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 Gold Fields. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orogen Royalties and Gold Fields.
Diversification Opportunities for Orogen Royalties and Gold Fields
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Orogen and Gold is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Orogen Royalties and Gold Fields Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Fields 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 Gold Fields. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Fields has no effect on the direction of Orogen Royalties i.e., Orogen Royalties and Gold Fields go up and down completely randomly.
Pair Corralation between Orogen Royalties and Gold Fields
Assuming the 90 days horizon Orogen Royalties is expected to under-perform the Gold Fields. In addition to that, Orogen Royalties is 1.14 times more volatile than Gold Fields Ltd. It trades about -0.04 of its total potential returns per unit of risk. Gold Fields Ltd is currently generating about 0.05 per unit of volatility. If you would invest 1,358 in Gold Fields Ltd on August 31, 2024 and sell it today you would earn a total of 98.00 from holding Gold Fields Ltd or generate 7.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orogen Royalties vs. Gold Fields Ltd
Performance |
| Timeline |
| Orogen Royalties |
| Gold Fields |
Orogen Royalties and Gold Fields Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orogen Royalties and Gold Fields
The main advantage of trading using opposite Orogen Royalties and Gold Fields positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orogen Royalties position performs unexpectedly, Gold Fields 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 Gold Fields will offset losses from the drop in Gold Fields' long position.| Orogen Royalties vs. Precipitate Gold Corp | Orogen Royalties vs. Sailfish Royalty Corp | Orogen Royalties vs. Hummingbird Resources PLC | Orogen Royalties vs. Almadex Minerals |
| Gold Fields vs. Agnico Eagle Mines | Gold Fields vs. Kinross Gold | Gold Fields vs. Harmony Gold Mining | Gold Fields vs. Franco Nevada |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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