Correlation Between Orogen Royalties and Endurance Gold

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

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

Diversification Opportunities for Orogen Royalties and Endurance Gold

0.67

Correlation Coefficient

Orogen Royalties  Endurance Gold

Poor diversification

The 3 months correlation between Orogen and Endurance is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Orogen Royalties and Endurance Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endurance Gold and Orogen Royalties 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 Orogen Royalties are associated (or correlated) with Endurance Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endurance Gold has no effect on the direction of Orogen Royalties i.e., Orogen Royalties and Endurance Gold go up and down completely randomly.

Pair Corralation between Orogen Royalties and Endurance Gold

Assuming the 90 days horizon Orogen Royalties is expected to under-perform the Endurance Gold. But the pink sheet apears to be less risky and, when comparing its historical volatility, Orogen Royalties is 1.52 times less risky than Endurance Gold. The pink sheet trades about -0.08 of its potential returns per unit of risk. The Endurance Gold is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  10.00  in Endurance Gold on September 14, 2024 and sell it today you would earn a total of  0.00  from holding Endurance Gold or generate 0.0% return on investment over 90 days.

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

Orogen Royalties  vs.  Endurance Gold

Orogen Royalties

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Orogen Royalties has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Endurance Gold

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Endurance Gold are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, Endurance Gold is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Orogen Royalties and Endurance Gold

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

The idea behind Orogen Royalties and Endurance Gold 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.