Correlation Between Orefinders Resources and Nine Mile
Can any of the company-specific risk be diversified away by investing in both Orefinders Resources and Nine Mile 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 Nine Mile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orefinders Resources and Nine Mile Metals, you can compare the effects of market volatilities on Orefinders Resources and Nine Mile 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 Nine Mile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orefinders Resources and Nine Mile.
Diversification Opportunities for Orefinders Resources and Nine Mile
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Orefinders and Nine is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Orefinders Resources and Nine Mile Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nine Mile Metals 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 Nine Mile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nine Mile Metals has no effect on the direction of Orefinders Resources i.e., Orefinders Resources and Nine Mile go up and down completely randomly.
Pair Corralation between Orefinders Resources and Nine Mile
Assuming the 90 days horizon Orefinders Resources is expected to generate 0.68 times more return on investment than Nine Mile. However, Orefinders Resources is 1.47 times less risky than Nine Mile. It trades about 0.04 of its potential returns per unit of risk. Nine Mile Metals is currently generating about -0.01 per unit of risk. If you would invest 3.32 in Orefinders Resources on October 25, 2024 and sell it today you would earn a total of 0.89 from holding Orefinders Resources or generate 26.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Orefinders Resources vs. Nine Mile Metals
Performance |
| Timeline |
| Orefinders Resources |
| Nine Mile Metals |
Orefinders Resources and Nine Mile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orefinders Resources and Nine Mile
The main advantage of trading using opposite Orefinders Resources and Nine Mile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orefinders Resources position performs unexpectedly, Nine Mile 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 Nine Mile will offset losses from the drop in Nine Mile'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 |
| Nine Mile vs. Endurance Gold | Nine Mile vs. Red Pine Exploration | Nine Mile vs. Altamira Gold Corp | Nine Mile vs. Grande Portage 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |