Correlation Between Senvest Capital and O3 Mining
Can any of the company-specific risk be diversified away by investing in both Senvest Capital and O3 Mining 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 Senvest Capital and O3 Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senvest Capital and O3 Mining, you can compare the effects of market volatilities on Senvest Capital and O3 Mining 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 Senvest Capital with a short position of O3 Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senvest Capital and O3 Mining.
Diversification Opportunities for Senvest Capital and O3 Mining
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Senvest and OIII is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Senvest Capital and O3 Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on O3 Mining and Senvest Capital 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 Senvest Capital are associated (or correlated) with O3 Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of O3 Mining has no effect on the direction of Senvest Capital i.e., Senvest Capital and O3 Mining go up and down completely randomly.
Pair Corralation between Senvest Capital and O3 Mining
Assuming the 90 days trading horizon Senvest Capital is expected to generate 5.76 times more return on investment than O3 Mining. However, Senvest Capital is 5.76 times more volatile than O3 Mining. It trades about 0.24 of its potential returns per unit of risk. O3 Mining is currently generating about 0.18 per unit of risk. If you would invest 35,000 in Senvest Capital on October 20, 2024 and sell it today you would earn a total of 3,250 from holding Senvest Capital or generate 9.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Senvest Capital vs. O3 Mining
Performance |
| Timeline |
| Senvest Capital |
| O3 Mining |
Senvest Capital and O3 Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senvest Capital and O3 Mining
The main advantage of trading using opposite Senvest Capital and O3 Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senvest Capital position performs unexpectedly, O3 Mining 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 O3 Mining will offset losses from the drop in O3 Mining's long position.| Senvest Capital vs. Titanium Transportation Group | Senvest Capital vs. Rogers Communications | Senvest Capital vs. Postmedia Network Canada | Senvest Capital vs. Medical Facilities |
| O3 Mining vs. First Majestic Silver | O3 Mining vs. Ivanhoe Energy | O3 Mining vs. Flinders Resources Limited | O3 Mining vs. Orezone 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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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