Correlation Between Orex Minerals and Cordoba Minerals

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

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

Diversification Opportunities for Orex Minerals and Cordoba Minerals

-0.31

Correlation Coefficient

Orex Minerals  Cordoba Minerals

Very good diversification

The 3 months correlation between Orex and Cordoba is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Orex Minerals and Cordoba Minerals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cordoba Minerals Corp and Orex Minerals 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 Orex Minerals are associated (or correlated) with Cordoba Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cordoba Minerals Corp has no effect on the direction of Orex Minerals i.e., Orex Minerals and Cordoba Minerals go up and down completely randomly.

Pair Corralation between Orex Minerals and Cordoba Minerals

Assuming the 90 days horizon Orex Minerals is expected to generate 4.24 times more return on investment than Cordoba Minerals. However, Orex Minerals is 4.24 times more volatile than Cordoba Minerals Corp. It trades about -0.01 of its potential returns per unit of risk. Cordoba Minerals Corp is currently generating about -0.29 per unit of risk. If you would invest  16.00  in Orex Minerals on December 4, 2024 and sell it today you would lose (1.00) from holding Orex Minerals or give up 6.25% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Orex Minerals  vs.  Cordoba Minerals Corp

Orex Minerals

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Orex Minerals are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Orex Minerals showed solid returns over the last few months and may actually be approaching a breakup point.

Cordoba Minerals Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cordoba Minerals Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Orex Minerals and Cordoba Minerals

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

The idea behind Orex Minerals and Cordoba Minerals Corp 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.

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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.