Correlation Between Orca Energy and Mako Mining
Can any of the company-specific risk be diversified away by investing in both Orca Energy and Mako 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 Orca Energy and Mako Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orca Energy Group and Mako Mining Corp, you can compare the effects of market volatilities on Orca Energy and Mako 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 Orca Energy with a short position of Mako Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orca Energy and Mako Mining.
Diversification Opportunities for Orca Energy and Mako Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Orca and Mako is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Orca Energy Group and Mako Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mako Mining Corp and Orca Energy 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 Orca Energy Group are associated (or correlated) with Mako Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mako Mining Corp has no effect on the direction of Orca Energy i.e., Orca Energy and Mako Mining go up and down completely randomly.
Pair Corralation between Orca Energy and Mako Mining
Assuming the 90 days trading horizon Orca Energy Group is expected to under-perform the Mako Mining. But the stock apears to be less risky and, when comparing its historical volatility, Orca Energy Group is 11.11 times less risky than Mako Mining. The stock trades about -0.04 of its potential returns per unit of risk. The Mako Mining Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 130.00 in Mako Mining Corp on September 14, 2024 and sell it today you would earn a total of 173.00 from holding Mako Mining Corp or generate 133.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orca Energy Group vs. Mako Mining Corp
Performance |
| Timeline |
| Orca Energy Group |
| Mako Mining Corp |
Orca Energy and Mako Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orca Energy and Mako Mining
The main advantage of trading using opposite Orca Energy and Mako Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orca Energy position performs unexpectedly, Mako 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 Mako Mining will offset losses from the drop in Mako Mining's long position.| Orca Energy vs. Mako Mining Corp | Orca Energy vs. High Liner Foods | Orca Energy vs. Ramp Metals | Orca Energy vs. Lion One Metals |
| Mako Mining vs. Arizona Sonoran Copper | Mako Mining vs. Marimaca Copper Corp | Mako Mining vs. World Copper | Mako Mining vs. QC Copper and |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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