Correlation Between CHKEW Old and Orosur Mining

Can any of the company-specific risk be diversified away by investing in both CHKEW Old and Orosur 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 CHKEW Old and Orosur Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CHKEW Old and Orosur Mining, you can compare the effects of market volatilities on CHKEW Old and Orosur 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 CHKEW Old with a short position of Orosur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHKEW Old and Orosur Mining.

Diversification Opportunities for CHKEW Old and Orosur Mining

-0.64

Correlation Coefficient

CHKEW Old  Orosur Mining

Excellent diversification

The 3 months correlation between CHKEW and Orosur is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding CHKEW Old and Orosur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orosur Mining and CHKEW Old 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 CHKEW Old are associated (or correlated) with Orosur Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orosur Mining has no effect on the direction of CHKEW Old i.e., CHKEW Old and Orosur Mining go up and down completely randomly.

Pair Corralation between CHKEW Old and Orosur Mining

Assuming the 90 days horizon CHKEW Old is expected to generate 4.95 times more return on investment than Orosur Mining. However, CHKEW Old is 4.95 times more volatile than Orosur Mining. It trades about 0.48 of its potential returns per unit of risk. Orosur Mining is currently generating about 0.11 per unit of risk. If you would invest  7,451  in CHKEW Old on October 10, 2024 and sell it today you would lose (262.00) from holding CHKEW Old or give up 3.52% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	16.94%
Values	Daily Returns

CHKEW Old  vs.  Orosur Mining

CHKEW Old

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CHKEW Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, CHKEW Old is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Orosur Mining

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Orosur Mining are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Orosur Mining reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CHKEW Old and Orosur Mining

The main advantage of trading using opposite CHKEW Old and Orosur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHKEW Old position performs unexpectedly, Orosur 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 Orosur Mining will offset losses from the drop in Orosur Mining's long position.

The idea behind CHKEW Old and Orosur Mining pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.