Pair Correlation Between Orestone Mining and Parex Resources

This module allows you to analyze existing cross correlation between Orestone Mining Corp and Parex Resources Inc. You can compare the effects of market volatilities on Orestone Mining and Parex Resources 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 Orestone Mining with a short position of Parex Resources. See also your portfolio center. Please also check ongoing floating volatility patterns of Orestone Mining and Parex Resources.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Orestone Mining Corp  vs   Parex Resources Inc
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Orestone Mining Corp is expected to under-perform the Parex Resources. In addition to that, Orestone Mining is 2.73 times more volatile than Parex Resources Inc. It trades about -0.08 of its total potential returns per unit of risk. Parex Resources Inc is currently generating about 0.32 per unit of volatility. If you would invest  1,419  in Parex Resources Inc on September 17, 2017 and sell it today you would earn a total of  178  from holding Parex Resources Inc or generate 12.54% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Orestone Mining and Parex Resources
-0.5

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification

Very good diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Orestone Mining Corp

  
0 

Risk-Adjusted Performance

Over the last 30 days Orestone Mining Corp has generated negative risk-adjusted returns adding no value to investors with long positions.

Parex Resources Inc

  
21 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Parex Resources Inc are ranked lower than 21 (%) of all global equities and portfolios over the last 30 days.