Correlation Between Orezone Gold and American Manganese
Can any of the company-specific risk be diversified away by investing in both Orezone Gold and American Manganese 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 Orezone Gold and American Manganese into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orezone Gold Corp and American Manganese, you can compare the effects of market volatilities on Orezone Gold and American Manganese 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 Orezone Gold with a short position of American Manganese. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orezone Gold and American Manganese.
Diversification Opportunities for Orezone Gold and American Manganese
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Orezone and American is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Orezone Gold Corp and American Manganese in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Manganese and Orezone 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 Orezone Gold Corp are associated (or correlated) with American Manganese. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Manganese has no effect on the direction of Orezone Gold i.e., Orezone Gold and American Manganese go up and down completely randomly.
Pair Corralation between Orezone Gold and American Manganese
Assuming the 90 days trading horizon Orezone Gold Corp is expected to generate 0.42 times more return on investment than American Manganese. However, Orezone Gold Corp is 2.36 times less risky than American Manganese. It trades about 0.13 of its potential returns per unit of risk. American Manganese is currently generating about -0.08 per unit of risk. If you would invest 66.00 in Orezone Gold Corp on November 3, 2024 and sell it today you would earn a total of 7.00 from holding Orezone Gold Corp or generate 10.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orezone Gold Corp vs. American Manganese
Performance |
| Timeline |
| Orezone Gold Corp |
| American Manganese |
Orezone Gold and American Manganese Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orezone Gold and American Manganese
The main advantage of trading using opposite Orezone Gold and American Manganese positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orezone Gold position performs unexpectedly, American Manganese 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 American Manganese will offset losses from the drop in American Manganese's long position.| Orezone Gold vs. i 80 Gold Corp | Orezone Gold vs. Perseus Mining | Orezone Gold vs. K92 Mining | Orezone Gold vs. GoGold Resources |
| American Manganese vs. Manganese X Energy | American Manganese vs. Frontier Lithium | American Manganese vs. Talon Metals Corp | American Manganese vs. Azincourt Uranium |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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