Correlation Between Wesdome Gold and OceanaGold
Can any of the company-specific risk be diversified away by investing in both Wesdome Gold and OceanaGold 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 Wesdome Gold and OceanaGold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wesdome Gold Mines and OceanaGold, you can compare the effects of market volatilities on Wesdome Gold and OceanaGold 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 Wesdome Gold with a short position of OceanaGold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wesdome Gold and OceanaGold.
Diversification Opportunities for Wesdome Gold and OceanaGold
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Wesdome and OceanaGold is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Wesdome Gold Mines and OceanaGold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OceanaGold and Wesdome 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 Wesdome Gold Mines are associated (or correlated) with OceanaGold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OceanaGold has no effect on the direction of Wesdome Gold i.e., Wesdome Gold and OceanaGold go up and down completely randomly.
Pair Corralation between Wesdome Gold and OceanaGold
Assuming the 90 days trading horizon Wesdome Gold Mines is expected to generate 1.01 times more return on investment than OceanaGold. However, Wesdome Gold is 1.01 times more volatile than OceanaGold. It trades about 0.14 of its potential returns per unit of risk. OceanaGold is currently generating about 0.11 per unit of risk. If you would invest 1,345 in Wesdome Gold Mines on November 3, 2024 and sell it today you would earn a total of 91.00 from holding Wesdome Gold Mines or generate 6.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wesdome Gold Mines vs. OceanaGold
Performance |
| Timeline |
| Wesdome Gold Mines |
| OceanaGold |
Wesdome Gold and OceanaGold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wesdome Gold and OceanaGold
The main advantage of trading using opposite Wesdome Gold and OceanaGold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wesdome Gold position performs unexpectedly, OceanaGold 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 OceanaGold will offset losses from the drop in OceanaGold's long position.| Wesdome Gold vs. OceanaGold | Wesdome Gold vs. Torex Gold Resources | Wesdome Gold vs. Alamos Gold | Wesdome Gold vs. Dundee Precious Metals |
| OceanaGold vs. Torex Gold Resources | OceanaGold vs. Wesdome Gold Mines | OceanaGold vs. Centerra Gold | OceanaGold vs. New Gold |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |