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
Orestone Mining Corp vs Parex Resources Inc
Assuming 30 trading days horizon, Orestone Mining Corp is expected to under-perform the Parex Resources. In addition to that, Orestone Mining is 3.48 times more volatile than Parex Resources Inc. It trades about -0.18 of its total potential returns per unit of risk. Parex Resources Inc is currently generating about -0.04 per unit of volatility. If you would invest 1,834 in Parex Resources Inc on February 17, 2018 and sell it today you would lose (34.00) from holding Parex Resources Inc or give up 1.85% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Very poor 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.
Over the last 30 days Orestone Mining Corp has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Parex Resources Inc has generated negative risk-adjusted returns adding no value to investors with long positions.