Correlation Between Intermap Technologies and Orezone Gold
Can any of the company-specific risk be diversified away by investing in both Intermap Technologies 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 Intermap Technologies and Orezone Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intermap Technologies Corp and Orezone Gold Corp, you can compare the effects of market volatilities on Intermap Technologies 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 Intermap Technologies with a short position of Orezone Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermap Technologies and Orezone Gold.
Diversification Opportunities for Intermap Technologies and Orezone Gold
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intermap and Orezone is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Intermap Technologies Corp 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 Intermap Technologies 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 Intermap Technologies Corp 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 Intermap Technologies i.e., Intermap Technologies and Orezone Gold go up and down completely randomly.
Pair Corralation between Intermap Technologies and Orezone Gold
Assuming the 90 days trading horizon Intermap Technologies Corp is expected to under-perform the Orezone Gold. In addition to that, Intermap Technologies is 1.55 times more volatile than Orezone Gold Corp. It trades about -0.06 of its total potential returns per unit of risk. Orezone Gold Corp is currently generating about 0.21 per unit of volatility. If you would invest 62.00 in Orezone Gold Corp on December 21, 2024 and sell it today you would earn a total of 31.00 from holding Orezone Gold Corp or generate 50.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Intermap Technologies Corp vs. Orezone Gold Corp
Performance |
Timeline |
Intermap Technologies |
Orezone Gold Corp |
Intermap Technologies and Orezone Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Intermap Technologies and Orezone Gold
The main advantage of trading using opposite Intermap Technologies and Orezone Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermap Technologies 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.Intermap Technologies vs. Firan Technology Group | Intermap Technologies vs. Vecima Networks | Intermap Technologies vs. D Box Technologies | Intermap Technologies vs. Tucows Inc |
Orezone Gold vs. i 80 Gold Corp | Orezone Gold vs. Perseus Mining | Orezone Gold vs. K92 Mining | Orezone Gold vs. GoGold Resources |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
CEOs Directory Screen CEOs from public companies around the world | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |