Correlation Between Orezone Gold and Maple Gold
Can any of the company-specific risk be diversified away by investing in both Orezone Gold and Maple Gold 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 Maple Gold 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 Maple Gold Mines, you can compare the effects of market volatilities on Orezone Gold and Maple Gold 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 Maple Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orezone Gold and Maple Gold.
Diversification Opportunities for Orezone Gold and Maple Gold
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Orezone and Maple is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Orezone Gold Corp and Maple Gold Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Gold Mines 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 Maple Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Gold Mines has no effect on the direction of Orezone Gold i.e., Orezone Gold and Maple Gold go up and down completely randomly.
Pair Corralation between Orezone Gold and Maple Gold
Assuming the 90 days trading horizon Orezone Gold Corp is expected to under-perform the Maple Gold. But the stock apears to be less risky and, when comparing its historical volatility, Orezone Gold Corp is 1.71 times less risky than Maple Gold. The stock trades about 0.0 of its potential returns per unit of risk. The Maple Gold Mines is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 5.50 in Maple Gold Mines on August 29, 2024 and sell it today you would earn a total of 0.50 from holding Maple Gold Mines or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orezone Gold Corp vs. Maple Gold Mines
Performance |
| Timeline |
| Orezone Gold Corp |
| Maple Gold Mines |
Orezone Gold and Maple Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orezone Gold and Maple Gold
The main advantage of trading using opposite Orezone Gold and Maple Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orezone Gold position performs unexpectedly, Maple Gold 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 Maple Gold will offset losses from the drop in Maple Gold'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 |
| Maple Gold vs. Liberty Gold Corp | Maple Gold vs. Cartier Resources | Maple Gold vs. Banyan Gold Corp | Maple Gold vs. Maritime Resources 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |