Correlation Between Orla Mining and Torex Gold
Can any of the company-specific risk be diversified away by investing in both Orla Mining and Torex 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 Orla Mining and Torex Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orla Mining and Torex Gold Resources, you can compare the effects of market volatilities on Orla Mining and Torex 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 Orla Mining with a short position of Torex Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orla Mining and Torex Gold.
Diversification Opportunities for Orla Mining and Torex Gold
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Orla and Torex is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Orla Mining and Torex Gold Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Torex Gold Resources and Orla Mining 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 Orla Mining are associated (or correlated) with Torex Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Torex Gold Resources has no effect on the direction of Orla Mining i.e., Orla Mining and Torex Gold go up and down completely randomly.
Pair Corralation between Orla Mining and Torex Gold
Given the investment horizon of 90 days Orla Mining is expected to generate 1.69 times less return on investment than Torex Gold. But when comparing it to its historical volatility, Orla Mining is 1.04 times less risky than Torex Gold. It trades about 0.06 of its potential returns per unit of risk. Torex Gold Resources is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,024 in Torex Gold Resources on September 1, 2024 and sell it today you would earn a total of 1,096 from holding Torex Gold Resources or generate 107.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orla Mining vs. Torex Gold Resources
Performance |
| Timeline |
| Orla Mining |
| Torex Gold Resources |
Orla Mining and Torex Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orla Mining and Torex Gold
The main advantage of trading using opposite Orla Mining and Torex Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orla Mining position performs unexpectedly, Torex 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 Torex Gold will offset losses from the drop in Torex Gold's long position.| Orla Mining vs. K92 Mining | Orla Mining vs. Equinox Gold Corp | Orla Mining vs. Contango ORE | Orla Mining vs. Sandstorm Gold Ltd |
| Torex Gold vs. Fossil Group | Torex Gold vs. Procter Gamble | Torex Gold vs. Zhihu Inc ADR | Torex Gold vs. Northstar Clean Technologies |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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