Correlation Between Orezone Gold and Ascot Resources
Can any of the company-specific risk be diversified away by investing in both Orezone Gold and Ascot Resources 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 Ascot Resources 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 Ascot Resources, you can compare the effects of market volatilities on Orezone Gold and Ascot Resources 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 Ascot Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orezone Gold and Ascot Resources.
Diversification Opportunities for Orezone Gold and Ascot Resources
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Orezone and Ascot is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Orezone Gold Corp and Ascot Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascot Resources 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 Ascot Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascot Resources has no effect on the direction of Orezone Gold i.e., Orezone Gold and Ascot Resources go up and down completely randomly.
Pair Corralation between Orezone Gold and Ascot Resources
Assuming the 90 days trading horizon Orezone Gold Corp is expected to generate 0.63 times more return on investment than Ascot Resources. However, Orezone Gold Corp is 1.59 times less risky than Ascot Resources. It trades about -0.02 of its potential returns per unit of risk. Ascot Resources is currently generating about -0.01 per unit of risk. If you would invest 132.00 in Orezone Gold Corp on November 2, 2024 and sell it today you would lose (58.00) from holding Orezone Gold Corp or give up 43.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orezone Gold Corp vs. Ascot Resources
Performance |
| Timeline |
| Orezone Gold Corp |
| Ascot Resources |
Orezone Gold and Ascot Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orezone Gold and Ascot Resources
The main advantage of trading using opposite Orezone Gold and Ascot Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orezone Gold position performs unexpectedly, Ascot Resources 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 Ascot Resources will offset losses from the drop in Ascot Resources' long position.| Orezone Gold vs. i 80 Gold Corp | Orezone Gold vs. Perseus Mining | Orezone Gold vs. K92 Mining | Orezone Gold vs. GoGold Resources |
| Ascot Resources vs. Queens Road Capital | Ascot Resources vs. Solid Impact Investments | Ascot Resources vs. Aya Gold Silver | Ascot Resources vs. Westshore Terminals Investment |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |