Correlation Between Puma Exploration and Orezone Gold
Can any of the company-specific risk be diversified away by investing in both Puma Exploration and Orezone 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 Puma Exploration and Orezone Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puma Exploration and Orezone Gold Corp, you can compare the effects of market volatilities on Puma Exploration and Orezone 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 Puma Exploration with a short position of Orezone Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puma Exploration and Orezone Gold.
Diversification Opportunities for Puma Exploration and Orezone Gold
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Puma and Orezone is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Puma Exploration and Orezone Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orezone Gold Corp and Puma Exploration 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 Puma Exploration are associated (or correlated) with Orezone Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orezone Gold Corp has no effect on the direction of Puma Exploration i.e., Puma Exploration and Orezone Gold go up and down completely randomly.
Pair Corralation between Puma Exploration and Orezone Gold
Assuming the 90 days horizon Puma Exploration is expected to generate 1.4 times more return on investment than Orezone Gold. However, Puma Exploration is 1.4 times more volatile than Orezone Gold Corp. It trades about 0.02 of its potential returns per unit of risk. Orezone Gold Corp is currently generating about -0.19 per unit of risk. If you would invest 6.00 in Puma Exploration on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Puma Exploration or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Puma Exploration vs. Orezone Gold Corp
Performance |
| Timeline |
| Puma Exploration |
| Orezone Gold Corp |
Puma Exploration and Orezone Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puma Exploration and Orezone Gold
The main advantage of trading using opposite Puma Exploration and Orezone Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puma Exploration position performs unexpectedly, Orezone 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 Orezone Gold will offset losses from the drop in Orezone Gold's long position.| Puma Exploration vs. Sixty North Gold | Puma Exploration vs. Red Pine Exploration | Puma Exploration vs. Grande Portage Resources | Puma Exploration vs. Altamira Gold Corp |
| Orezone Gold vs. Aurion Resources | Orezone Gold vs. Minera Alamos | Orezone Gold vs. Rio2 Limited | Orezone Gold vs. Roscan 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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