Correlation Between Omineca Mining and Puma Exploration
Can any of the company-specific risk be diversified away by investing in both Omineca Mining and Puma Exploration 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 Puma Exploration 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 Puma Exploration, you can compare the effects of market volatilities on Omineca Mining and Puma Exploration 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 Puma Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omineca Mining and Puma Exploration.
Diversification Opportunities for Omineca Mining and Puma Exploration
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Omineca and Puma is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Omineca Mining and and Puma Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puma Exploration 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 Puma Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puma Exploration has no effect on the direction of Omineca Mining i.e., Omineca Mining and Puma Exploration go up and down completely randomly.
Pair Corralation between Omineca Mining and Puma Exploration
Assuming the 90 days horizon Omineca Mining is expected to generate 1.06 times less return on investment than Puma Exploration. In addition to that, Omineca Mining is 1.38 times more volatile than Puma Exploration. It trades about 0.01 of its total potential returns per unit of risk. Puma Exploration is currently generating about 0.01 per unit of volatility. If you would invest 8.00 in Puma Exploration on September 3, 2024 and sell it today you would lose (2.00) from holding Puma Exploration or give up 25.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Omineca Mining and vs. Puma Exploration
Performance |
| Timeline |
| Omineca Mining |
| Puma Exploration |
Omineca Mining and Puma Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omineca Mining and Puma Exploration
The main advantage of trading using opposite Omineca Mining and Puma Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omineca Mining position performs unexpectedly, Puma Exploration 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 Puma Exploration will offset losses from the drop in Puma Exploration's long position.| Omineca Mining vs. Quebec Precious Metals | Omineca Mining vs. Bluestone Resources | Omineca Mining vs. Elemental Royalties Corp | Omineca Mining vs. Aurelius Minerals |
| Puma Exploration vs. Sixty North Gold | Puma Exploration vs. Red Pine Exploration | Puma Exploration vs. Grande Portage Resources | Puma Exploration vs. Altamira 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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