Correlation Between Orefinders Resources and Gold Bull
Can any of the company-specific risk be diversified away by investing in both Orefinders Resources and Gold Bull 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 Orefinders Resources and Gold Bull into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orefinders Resources and Gold Bull Resources, you can compare the effects of market volatilities on Orefinders Resources and Gold Bull 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 Orefinders Resources with a short position of Gold Bull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orefinders Resources and Gold Bull.
Diversification Opportunities for Orefinders Resources and Gold Bull
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Orefinders and Gold is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Orefinders Resources and Gold Bull Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Bull Resources and Orefinders Resources 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 Orefinders Resources are associated (or correlated) with Gold Bull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Bull Resources has no effect on the direction of Orefinders Resources i.e., Orefinders Resources and Gold Bull go up and down completely randomly.
Pair Corralation between Orefinders Resources and Gold Bull
Assuming the 90 days horizon Orefinders Resources is expected to generate 0.93 times more return on investment than Gold Bull. However, Orefinders Resources is 1.07 times less risky than Gold Bull. It trades about 0.06 of its potential returns per unit of risk. Gold Bull Resources is currently generating about 0.01 per unit of risk. If you would invest 2.81 in Orefinders Resources on August 29, 2024 and sell it today you would earn a total of 2.19 from holding Orefinders Resources or generate 77.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orefinders Resources vs. Gold Bull Resources
Performance |
| Timeline |
| Orefinders Resources |
| Gold Bull Resources |
Orefinders Resources and Gold Bull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orefinders Resources and Gold Bull
The main advantage of trading using opposite Orefinders Resources and Gold Bull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orefinders Resources position performs unexpectedly, Gold Bull 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 Gold Bull will offset losses from the drop in Gold Bull's long position.| Orefinders Resources vs. Aurion Resources | Orefinders Resources vs. Liberty Gold Corp | Orefinders Resources vs. Orezone Gold Corp | Orefinders Resources vs. Fortuna Silver Mines |
| Gold Bull vs. Aurion Resources | Gold Bull vs. Liberty Gold Corp | Gold Bull vs. Orezone Gold Corp | Gold Bull vs. Fortuna Silver Mines |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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