Correlation Between Opus One and Grosvenor Resource

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

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

Diversification Opportunities for Opus One and Grosvenor Resource

0.0

Correlation Coefficient

Opus One  Grosvenor Resource

Pay attention - limited upside

The 3 months correlation between Opus and Grosvenor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Opus One Resources and Grosvenor Resource Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grosvenor Resource Corp and Opus One 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 Opus One Resources are associated (or correlated) with Grosvenor Resource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grosvenor Resource Corp has no effect on the direction of Opus One i.e., Opus One and Grosvenor Resource go up and down completely randomly.

Pair Corralation between Opus One and Grosvenor Resource

If you would invest  4.00  in Opus One Resources on September 22, 2024 and sell it today you would earn a total of  0.50  from holding Opus One Resources or generate 12.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Opus One Resources  vs.  Grosvenor Resource Corp

Opus One Resources

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Opus One Resources are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Opus One showed solid returns over the last few months and may actually be approaching a breakup point.

Grosvenor Resource Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Grosvenor Resource Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Grosvenor Resource is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Opus One and Grosvenor Resource

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

The idea behind Opus One Resources and Grosvenor Resource 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.

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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.