Correlation Between Orla Mining and SSR Mining
Can any of the company-specific risk be diversified away by investing in both Orla Mining and SSR Mining 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 Orla Mining and SSR Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orla Mining and SSR Mining, you can compare the effects of market volatilities on Orla Mining and SSR Mining 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 Orla Mining with a short position of SSR Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orla Mining and SSR Mining.
Diversification Opportunities for Orla Mining and SSR Mining
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Orla and SSR is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Orla Mining and SSR Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSR Mining and Orla 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 Orla Mining are associated (or correlated) with SSR Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSR Mining has no effect on the direction of Orla Mining i.e., Orla Mining and SSR Mining go up and down completely randomly.
Pair Corralation between Orla Mining and SSR Mining
Assuming the 90 days trading horizon Orla Mining is expected to generate 0.92 times more return on investment than SSR Mining. However, Orla Mining is 1.09 times less risky than SSR Mining. It trades about -0.08 of its potential returns per unit of risk. SSR Mining is currently generating about -0.08 per unit of risk. If you would invest 684.00 in Orla Mining on August 28, 2024 and sell it today you would lose (55.00) from holding Orla Mining or give up 8.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orla Mining vs. SSR Mining
Performance |
| Timeline |
| Orla Mining |
| SSR Mining |
Orla Mining and SSR Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orla Mining and SSR Mining
The main advantage of trading using opposite Orla Mining and SSR Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orla Mining position performs unexpectedly, SSR Mining 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 SSR Mining will offset losses from the drop in SSR Mining's long position.The idea behind Orla Mining and SSR Mining pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| SSR Mining vs. Pan American Silver | SSR Mining vs. MAG Silver Corp | SSR Mining vs. Osisko Gold Ro | SSR Mining vs. Sandstorm Gold Ltd |
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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