Correlation Between Orezone Gold and Copper Fox
Can any of the company-specific risk be diversified away by investing in both Orezone Gold and Copper Fox 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 Copper Fox 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 Copper Fox Metals, you can compare the effects of market volatilities on Orezone Gold and Copper Fox 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 Copper Fox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orezone Gold and Copper Fox.
Diversification Opportunities for Orezone Gold and Copper Fox
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Orezone and Copper is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Orezone Gold Corp and Copper Fox Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copper Fox Metals 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 Copper Fox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copper Fox Metals has no effect on the direction of Orezone Gold i.e., Orezone Gold and Copper Fox go up and down completely randomly.
Pair Corralation between Orezone Gold and Copper Fox
Assuming the 90 days trading horizon Orezone Gold Corp is expected to under-perform the Copper Fox. But the stock apears to be less risky and, when comparing its historical volatility, Orezone Gold Corp is 2.1 times less risky than Copper Fox. The stock trades about -0.01 of its potential returns per unit of risk. The Copper Fox Metals is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 16.00 in Copper Fox Metals on September 3, 2024 and sell it today you would earn a total of 12.00 from holding Copper Fox Metals or generate 75.0% 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. Copper Fox Metals
Performance |
| Timeline |
| Orezone Gold Corp |
| Copper Fox Metals |
Orezone Gold and Copper Fox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orezone Gold and Copper Fox
The main advantage of trading using opposite Orezone Gold and Copper Fox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orezone Gold position performs unexpectedly, Copper Fox 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 Copper Fox will offset losses from the drop in Copper Fox'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 |
| Copper Fox vs. Romios Gold Resources | Copper Fox vs. Eagle Plains Resources | Copper Fox vs. Fjordland Exploration | Copper Fox vs. Amarc Resources |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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