Correlation Between Omai Gold and Getchell Gold
Can any of the company-specific risk be diversified away by investing in both Omai Gold and Getchell 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 Omai Gold and Getchell Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Omai Gold Mines and Getchell Gold Corp, you can compare the effects of market volatilities on Omai Gold and Getchell 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 Omai Gold with a short position of Getchell Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omai Gold and Getchell Gold.
Diversification Opportunities for Omai Gold and Getchell Gold
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Omai and Getchell is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Omai Gold Mines and Getchell Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getchell Gold Corp and Omai Gold 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 Omai Gold Mines are associated (or correlated) with Getchell Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getchell Gold Corp has no effect on the direction of Omai Gold i.e., Omai Gold and Getchell Gold go up and down completely randomly.
Pair Corralation between Omai Gold and Getchell Gold
Assuming the 90 days horizon Omai Gold Mines is expected to generate 1.0 times more return on investment than Getchell Gold. However, Omai Gold is 1.0 times more volatile than Getchell Gold Corp. It trades about 0.1 of its potential returns per unit of risk. Getchell Gold Corp is currently generating about 0.05 per unit of risk. If you would invest 2.95 in Omai Gold Mines on September 1, 2024 and sell it today you would earn a total of 9.05 from holding Omai Gold Mines or generate 306.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Omai Gold Mines vs. Getchell Gold Corp
Performance |
| Timeline |
| Omai Gold Mines |
| Getchell Gold Corp |
Omai Gold and Getchell Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omai Gold and Getchell Gold
The main advantage of trading using opposite Omai Gold and Getchell Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omai Gold position performs unexpectedly, Getchell 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 Getchell Gold will offset losses from the drop in Getchell Gold's long position.| Omai Gold vs. Getchell Gold Corp | Omai Gold vs. Galiano Gold | Omai Gold vs. B2Gold Corp | Omai Gold vs. Grande Portage Resources |
| Getchell Gold vs. White Gold Corp | Getchell Gold vs. Phenom Resources Corp | Getchell Gold vs. Revival Gold | Getchell Gold vs. Omai Gold Mines |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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