Correlation Between Oracle and Nighthawk Gold
Can any of the company-specific risk be diversified away by investing in both Oracle and Nighthawk 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 Oracle and Nighthawk Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oracle and Nighthawk Gold Corp, you can compare the effects of market volatilities on Oracle and Nighthawk 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 Oracle with a short position of Nighthawk Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oracle and Nighthawk Gold.
Diversification Opportunities for Oracle and Nighthawk Gold
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Oracle and Nighthawk is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Oracle and Nighthawk Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nighthawk Gold Corp and Oracle 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 Oracle are associated (or correlated) with Nighthawk Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nighthawk Gold Corp has no effect on the direction of Oracle i.e., Oracle and Nighthawk Gold go up and down completely randomly.
Pair Corralation between Oracle and Nighthawk Gold
If you would invest 15,554 in Oracle on September 10, 2024 and sell it today you would earn a total of 3,615 from holding Oracle or generate 23.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 1.56% |
Values | Daily Returns |
Oracle vs. Nighthawk Gold Corp
Performance |
Timeline |
Oracle |
Nighthawk Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Oracle and Nighthawk Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Oracle and Nighthawk Gold
The main advantage of trading using opposite Oracle and Nighthawk Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oracle position performs unexpectedly, Nighthawk 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 Nighthawk Gold will offset losses from the drop in Nighthawk Gold's long position.Oracle vs. Palo Alto Networks | Oracle vs. Crowdstrike Holdings | Oracle vs. Microsoft | Oracle vs. Block Inc |
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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