Correlation Between Orezone Gold and Angus Gold
Can any of the company-specific risk be diversified away by investing in both Orezone Gold and Angus 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 Orezone Gold and Angus Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orezone Gold Corp and Angus Gold, you can compare the effects of market volatilities on Orezone Gold and Angus 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 Orezone Gold with a short position of Angus Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orezone Gold and Angus Gold.
Diversification Opportunities for Orezone Gold and Angus Gold
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Orezone and Angus is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Orezone Gold Corp and Angus Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angus Gold and Orezone Gold 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 Orezone Gold Corp are associated (or correlated) with Angus Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angus Gold has no effect on the direction of Orezone Gold i.e., Orezone Gold and Angus Gold go up and down completely randomly.
Pair Corralation between Orezone Gold and Angus Gold
Assuming the 90 days horizon Orezone Gold is expected to generate 2.71 times less return on investment than Angus Gold. But when comparing it to its historical volatility, Orezone Gold Corp is 2.29 times less risky than Angus Gold. It trades about 0.16 of its potential returns per unit of risk. Angus Gold is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 35.00 in Angus Gold on January 14, 2025 and sell it today you would earn a total of 19.00 from holding Angus Gold or generate 54.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orezone Gold Corp vs. Angus Gold
Performance |
| Timeline |
| Orezone Gold Corp |
| Angus Gold |
Orezone Gold and Angus Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orezone Gold and Angus Gold
The main advantage of trading using opposite Orezone Gold and Angus Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orezone Gold position performs unexpectedly, Angus 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 Angus Gold will offset losses from the drop in Angus Gold's long position.| Orezone Gold vs. Aurion Resources | Orezone Gold vs. Minera Alamos | Orezone Gold vs. Rio2 Limited | Orezone Gold vs. Roscan Gold Corp |
| Angus Gold vs. Newmont Goldcorp Corp | Angus Gold vs. Agnico Eagle Mines | Angus Gold vs. Zijin Mining Group | Angus Gold vs. Zijin Mining Group |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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