Correlation Between Omineca Mining and Cabral Gold
Can any of the company-specific risk be diversified away by investing in both Omineca Mining and Cabral 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 Omineca Mining and Cabral Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Omineca Mining and and Cabral Gold, you can compare the effects of market volatilities on Omineca Mining and Cabral 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 Omineca Mining with a short position of Cabral Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omineca Mining and Cabral Gold.
Diversification Opportunities for Omineca Mining and Cabral Gold
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Omineca and Cabral is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Omineca Mining and and Cabral Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cabral Gold and Omineca 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 Omineca Mining and are associated (or correlated) with Cabral Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cabral Gold has no effect on the direction of Omineca Mining i.e., Omineca Mining and Cabral Gold go up and down completely randomly.
Pair Corralation between Omineca Mining and Cabral Gold
Assuming the 90 days horizon Omineca Mining and is expected to generate 0.44 times more return on investment than Cabral Gold. However, Omineca Mining and is 2.3 times less risky than Cabral Gold. It trades about 0.03 of its potential returns per unit of risk. Cabral Gold is currently generating about -0.02 per unit of risk. If you would invest 4.50 in Omineca Mining and on August 26, 2024 and sell it today you would earn a total of 0.02 from holding Omineca Mining and or generate 0.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Omineca Mining and vs. Cabral Gold
Performance |
| Timeline |
| Omineca Mining |
| Cabral Gold |
Omineca Mining and Cabral Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omineca Mining and Cabral Gold
The main advantage of trading using opposite Omineca Mining and Cabral Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omineca Mining position performs unexpectedly, Cabral 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 Cabral Gold will offset losses from the drop in Cabral Gold's long position.| Omineca Mining vs. Aurion Resources | Omineca Mining vs. Liberty Gold Corp | Omineca Mining vs. Orezone Gold Corp | Omineca Mining vs. Radisson Mining Resources |
| Cabral Gold vs. Aurion Resources | Cabral Gold vs. Liberty Gold Corp | Cabral Gold vs. Orezone Gold Corp | Cabral Gold vs. Radisson Mining Resources |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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