Correlation Between Orezone Gold and Goldbank Mining
Can any of the company-specific risk be diversified away by investing in both Orezone Gold and Goldbank 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 Orezone Gold and Goldbank Mining 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 Goldbank Mining Corp, you can compare the effects of market volatilities on Orezone Gold and Goldbank 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 Orezone Gold with a short position of Goldbank Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orezone Gold and Goldbank Mining.
Diversification Opportunities for Orezone Gold and Goldbank Mining
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Orezone and Goldbank is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Orezone Gold Corp and Goldbank Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldbank Mining Corp 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 Goldbank Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldbank Mining Corp has no effect on the direction of Orezone Gold i.e., Orezone Gold and Goldbank Mining go up and down completely randomly.
Pair Corralation between Orezone Gold and Goldbank Mining
Assuming the 90 days trading horizon Orezone Gold is expected to generate 4.14 times less return on investment than Goldbank Mining. But when comparing it to its historical volatility, Orezone Gold Corp is 2.64 times less risky than Goldbank Mining. It trades about 0.02 of its potential returns per unit of risk. Goldbank Mining Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 28.00 in Goldbank Mining Corp on September 2, 2024 and sell it today you would lose (5.00) from holding Goldbank Mining Corp or give up 17.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Orezone Gold Corp vs. Goldbank Mining Corp
Performance |
| Timeline |
| Orezone Gold Corp |
| Goldbank Mining Corp |
Orezone Gold and Goldbank Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orezone Gold and Goldbank Mining
The main advantage of trading using opposite Orezone Gold and Goldbank Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orezone Gold position performs unexpectedly, Goldbank 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 Goldbank Mining will offset losses from the drop in Goldbank Mining'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 |
| Goldbank Mining vs. First Majestic Silver | Goldbank Mining vs. Ivanhoe Energy | Goldbank Mining vs. Orezone 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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