Correlation Between Omineca Mining and Independence Gold
Can any of the company-specific risk be diversified away by investing in both Omineca Mining and Independence 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 Independence 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 Independence Gold Corp, you can compare the effects of market volatilities on Omineca Mining and Independence 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 Independence Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omineca Mining and Independence Gold.
Diversification Opportunities for Omineca Mining and Independence Gold
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Omineca and Independence is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Omineca Mining and and Independence Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Independence Gold Corp 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 Independence Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Independence Gold Corp has no effect on the direction of Omineca Mining i.e., Omineca Mining and Independence Gold go up and down completely randomly.
Pair Corralation between Omineca Mining and Independence Gold
Assuming the 90 days horizon Omineca Mining and is expected to generate 2.1 times more return on investment than Independence Gold. However, Omineca Mining is 2.1 times more volatile than Independence Gold Corp. It trades about 0.01 of its potential returns per unit of risk. Independence Gold Corp is currently generating about -0.24 per unit of risk. If you would invest 3.59 in Omineca Mining and on December 1, 2024 and sell it today you would lose (0.34) from holding Omineca Mining and or give up 9.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Omineca Mining and vs. Independence Gold Corp
Performance |
| Timeline |
| Omineca Mining |
| Independence Gold Corp |
Omineca Mining and Independence Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omineca Mining and Independence Gold
The main advantage of trading using opposite Omineca Mining and Independence Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omineca Mining position performs unexpectedly, Independence 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 Independence Gold will offset losses from the drop in Independence Gold's long position.| Omineca Mining vs. Quebec Precious Metals | Omineca Mining vs. Elemental Royalties Corp | Omineca Mining vs. Aurelius Minerals | Omineca Mining vs. Serabi Gold PLC |
| Independence Gold vs. Heliostar Metals | Independence Gold vs. Revival Gold | Independence Gold vs. Cabral Gold | Independence Gold vs. Cassiar Gold Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |