Correlation Between Robex Resources and Orla Mining

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

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

Diversification Opportunities for Robex Resources and Orla Mining

0.61

Correlation Coefficient

Robex Resources  Orla Mining

Poor diversification

The 3 months correlation between Robex and Orla is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Robex Resources and Orla Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orla Mining and Robex Resources 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 Robex Resources are associated (or correlated) with Orla Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orla Mining has no effect on the direction of Robex Resources i.e., Robex Resources and Orla Mining go up and down completely randomly.

Pair Corralation between Robex Resources and Orla Mining

Assuming the 90 days horizon Robex Resources is expected to generate 4.18 times less return on investment than Orla Mining. But when comparing it to its historical volatility, Robex Resources is 1.05 times less risky than Orla Mining. It trades about 0.07 of its potential returns per unit of risk. Orla Mining is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest  543.00  in Orla Mining on December 28, 2024 and sell it today you would earn a total of  366.00  from holding Orla Mining or generate 67.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	96.77%
Values	Daily Returns

Robex Resources  vs.  Orla Mining

Robex Resources

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Robex Resources are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental drivers, Robex Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Orla Mining

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Orla Mining are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile essential indicators, Orla Mining sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Robex Resources and Orla Mining

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

The idea behind Robex Resources and Orla 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.