Correlation Between Orefinders Resources and Nighthawk Gold
Can any of the company-specific risk be diversified away by investing in both Orefinders Resources and Nighthawk 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 Nighthawk 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 Nighthawk Gold Corp, you can compare the effects of market volatilities on Orefinders Resources and Nighthawk 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 Nighthawk Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orefinders Resources and Nighthawk Gold.
Diversification Opportunities for Orefinders Resources and Nighthawk Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Orefinders and Nighthawk is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Orefinders Resources and Nighthawk Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nighthawk 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 Nighthawk Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nighthawk Gold Corp has no effect on the direction of Orefinders Resources i.e., Orefinders Resources and Nighthawk Gold go up and down completely randomly.
Pair Corralation between Orefinders Resources and Nighthawk Gold
If you would invest 4.25 in Orefinders Resources on October 25, 2024 and sell it today you would lose (0.04) from holding Orefinders Resources or give up 0.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Orefinders Resources vs. Nighthawk Gold Corp
Performance |
| Timeline |
| Orefinders Resources |
| Nighthawk Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Orefinders Resources and Nighthawk Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orefinders Resources and Nighthawk Gold
The main advantage of trading using opposite Orefinders Resources and Nighthawk Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orefinders Resources position performs unexpectedly, Nighthawk 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 Nighthawk Gold will offset losses from the drop in Nighthawk Gold's long position.| Orefinders Resources vs. Lavras Gold Corp | Orefinders Resources vs. TRU Precious Metals | Orefinders Resources vs. North Peak Resources | Orefinders Resources vs. Nine Mile Metals |
| Nighthawk Gold vs. Endurance Gold | Nighthawk Gold vs. Red Pine Exploration | Nighthawk Gold vs. Puma Exploration | Nighthawk Gold vs. White Gold 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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