Correlation Between Orosur Mining and Kinross Gold
Can any of the company-specific risk be diversified away by investing in both Orosur Mining and Kinross 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 Orosur Mining and Kinross Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orosur Mining and Kinross Gold, you can compare the effects of market volatilities on Orosur Mining and Kinross 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 Orosur Mining with a short position of Kinross Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orosur Mining and Kinross Gold.
Diversification Opportunities for Orosur Mining and Kinross Gold
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Orosur and Kinross is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Orosur Mining and Kinross Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinross Gold and Orosur 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 Orosur Mining are associated (or correlated) with Kinross Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinross Gold has no effect on the direction of Orosur Mining i.e., Orosur Mining and Kinross Gold go up and down completely randomly.
Pair Corralation between Orosur Mining and Kinross Gold
Assuming the 90 days horizon Orosur Mining is expected to generate 62.21 times more return on investment than Kinross Gold. However, Orosur Mining is 62.21 times more volatile than Kinross Gold. It trades about 0.22 of its potential returns per unit of risk. Kinross Gold is currently generating about -0.02 per unit of risk. If you would invest 0.10 in Orosur Mining on September 2, 2024 and sell it today you would earn a total of 2.60 from holding Orosur Mining or generate 2600.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orosur Mining vs. Kinross Gold
Performance |
| Timeline |
| Orosur Mining |
| Kinross Gold |
Orosur Mining and Kinross Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orosur Mining and Kinross Gold
The main advantage of trading using opposite Orosur Mining and Kinross Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orosur Mining position performs unexpectedly, Kinross 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 Kinross Gold will offset losses from the drop in Kinross Gold's long position.| Orosur Mining vs. South32 Limited | Orosur Mining vs. NioCorp Developments Ltd | Orosur Mining vs. HUMANA INC | Orosur Mining vs. SCOR PK |
| Kinross Gold vs. Fortitude Gold Corp | Kinross Gold vs. New Gold | Kinross Gold vs. Galiano Gold | Kinross Gold vs. GoldMining |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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