Correlation Between ODYSSEY GOLD and ZIJIN MINH
Can any of the company-specific risk be diversified away by investing in both ODYSSEY GOLD and ZIJIN MINH 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 ODYSSEY GOLD and ZIJIN MINH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ODYSSEY GOLD LTD and ZIJIN MINH UNSPADR20, you can compare the effects of market volatilities on ODYSSEY GOLD and ZIJIN MINH 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 ODYSSEY GOLD with a short position of ZIJIN MINH. Check out your portfolio center. Please also check ongoing floating volatility patterns of ODYSSEY GOLD and ZIJIN MINH.
Diversification Opportunities for ODYSSEY GOLD and ZIJIN MINH
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ODYSSEY and ZIJIN is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding ODYSSEY GOLD LTD and ZIJIN MINH UNSPADR20 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZIJIN MINH UNSPADR20 and ODYSSEY 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 ODYSSEY GOLD LTD are associated (or correlated) with ZIJIN MINH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZIJIN MINH UNSPADR20 has no effect on the direction of ODYSSEY GOLD i.e., ODYSSEY GOLD and ZIJIN MINH go up and down completely randomly.
Pair Corralation between ODYSSEY GOLD and ZIJIN MINH
Assuming the 90 days horizon ODYSSEY GOLD LTD is expected to generate 4.77 times more return on investment than ZIJIN MINH. However, ODYSSEY GOLD is 4.77 times more volatile than ZIJIN MINH UNSPADR20. It trades about 0.04 of its potential returns per unit of risk. ZIJIN MINH UNSPADR20 is currently generating about 0.04 per unit of risk. If you would invest 2.35 in ODYSSEY GOLD LTD on September 24, 2024 and sell it today you would lose (1.55) from holding ODYSSEY GOLD LTD or give up 65.96% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
ODYSSEY GOLD LTD vs. ZIJIN MINH UNSPADR20
Performance |
Timeline |
ODYSSEY GOLD LTD |
ZIJIN MINH UNSPADR20 |
ODYSSEY GOLD and ZIJIN MINH Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ODYSSEY GOLD and ZIJIN MINH
The main advantage of trading using opposite ODYSSEY GOLD and ZIJIN MINH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ODYSSEY GOLD position performs unexpectedly, ZIJIN MINH 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 ZIJIN MINH will offset losses from the drop in ZIJIN MINH's long position.ODYSSEY GOLD vs. ZIJIN MINH UNSPADR20 | ODYSSEY GOLD vs. Newmont | ODYSSEY GOLD vs. Barrick Gold | ODYSSEY GOLD vs. Franco Nevada |
ZIJIN MINH vs. Newmont | ZIJIN MINH vs. Barrick Gold | ZIJIN MINH vs. Franco Nevada | ZIJIN MINH vs. Agnico Eagle Mines |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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