Correlation Between Orezone Gold and Winpak
Can any of the company-specific risk be diversified away by investing in both Orezone Gold and Winpak 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 Winpak 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 Winpak, you can compare the effects of market volatilities on Orezone Gold and Winpak 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 Winpak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orezone Gold and Winpak.
Diversification Opportunities for Orezone Gold and Winpak
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Orezone and Winpak is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Orezone Gold Corp and Winpak in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winpak 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 Winpak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winpak has no effect on the direction of Orezone Gold i.e., Orezone Gold and Winpak go up and down completely randomly.
Pair Corralation between Orezone Gold and Winpak
Assuming the 90 days trading horizon Orezone Gold Corp is expected to under-perform the Winpak. In addition to that, Orezone Gold is 2.69 times more volatile than Winpak. It trades about -0.02 of its total potential returns per unit of risk. Winpak is currently generating about 0.03 per unit of volatility. If you would invest 4,396 in Winpak on August 31, 2024 and sell it today you would earn a total of 456.00 from holding Winpak or generate 10.37% 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. Winpak
Performance |
| Timeline |
| Orezone Gold Corp |
| Winpak |
Orezone Gold and Winpak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orezone Gold and Winpak
The main advantage of trading using opposite Orezone Gold and Winpak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orezone Gold position performs unexpectedly, Winpak 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 Winpak will offset losses from the drop in Winpak'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 |
| Winpak vs. Olympia Financial Group | Winpak vs. Royal Bank of | Winpak vs. Western Investment | Winpak vs. Economic Investment Trust |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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