Correlation Between Orefinders Resources and Magna Gold
Can any of the company-specific risk be diversified away by investing in both Orefinders Resources and Magna 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 Orefinders Resources and Magna Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orefinders Resources and Magna Gold Corp, you can compare the effects of market volatilities on Orefinders Resources and Magna 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 Orefinders Resources with a short position of Magna Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orefinders Resources and Magna Gold.
Diversification Opportunities for Orefinders Resources and Magna Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Orefinders and Magna is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Orefinders Resources and Magna Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magna Gold Corp 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 Magna Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magna Gold Corp has no effect on the direction of Orefinders Resources i.e., Orefinders Resources and Magna Gold go up and down completely randomly.
Pair Corralation between Orefinders Resources and Magna Gold
If you would invest 1.82 in Orefinders Resources on August 25, 2024 and sell it today you would earn a total of 2.84 from holding Orefinders Resources or generate 156.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.37% |
| Values | Daily Returns |
Orefinders Resources vs. Magna Gold Corp
Performance |
| Timeline |
| Orefinders Resources |
| Magna Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Orefinders Resources and Magna Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orefinders Resources and Magna Gold
The main advantage of trading using opposite Orefinders Resources and Magna Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orefinders Resources position performs unexpectedly, Magna 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 Magna Gold will offset losses from the drop in Magna Gold's long position.| Orefinders Resources vs. Aurion Resources | Orefinders Resources vs. Liberty Gold Corp | Orefinders Resources vs. Rio2 Limited | Orefinders Resources vs. Orezone Gold Corp |
| Magna Gold vs. Robex Resources | Magna Gold vs. Rover Metals Corp | Magna Gold vs. Eloro Resources | Magna Gold vs. Orefinders Resources |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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