Correlation Between Orezone Gold and Mandalay Resources
Can any of the company-specific risk be diversified away by investing in both Orezone Gold and Mandalay 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 Mandalay 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 Mandalay Resources Corp, you can compare the effects of market volatilities on Orezone Gold and Mandalay 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 Mandalay Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orezone Gold and Mandalay Resources.
Diversification Opportunities for Orezone Gold and Mandalay Resources
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Orezone and Mandalay is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Orezone Gold Corp and Mandalay Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mandalay Resources 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 Mandalay Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mandalay Resources Corp has no effect on the direction of Orezone Gold i.e., Orezone Gold and Mandalay Resources go up and down completely randomly.
Pair Corralation between Orezone Gold and Mandalay Resources
Assuming the 90 days trading horizon Orezone Gold Corp is expected to under-perform the Mandalay Resources. In addition to that, Orezone Gold is 1.46 times more volatile than Mandalay Resources Corp. It trades about -0.06 of its total potential returns per unit of risk. Mandalay Resources Corp is currently generating about 0.41 per unit of volatility. If you would invest 337.00 in Mandalay Resources Corp on September 12, 2024 and sell it today you would earn a total of 97.00 from holding Mandalay Resources Corp or generate 28.78% 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. Mandalay Resources Corp
Performance |
| Timeline |
| Orezone Gold Corp |
| Mandalay Resources Corp |
Orezone Gold and Mandalay Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orezone Gold and Mandalay Resources
The main advantage of trading using opposite Orezone Gold and Mandalay Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orezone Gold position performs unexpectedly, Mandalay 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 Mandalay Resources will offset losses from the drop in Mandalay 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 |
| Mandalay Resources vs. North Arrow Minerals | Mandalay Resources vs. International Tower Hill | Mandalay Resources vs. Jade Leader Corp | Mandalay Resources vs. Morien 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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