Correlation Between Argus Metals and OceanaGold
Can any of the company-specific risk be diversified away by investing in both Argus Metals and OceanaGold 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 Argus Metals and OceanaGold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argus Metals Corp and OceanaGold, you can compare the effects of market volatilities on Argus Metals and OceanaGold 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 Argus Metals with a short position of OceanaGold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argus Metals and OceanaGold.
Diversification Opportunities for Argus Metals and OceanaGold
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Argus and OceanaGold is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Argus Metals Corp and OceanaGold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OceanaGold and Argus Metals 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 Argus Metals Corp are associated (or correlated) with OceanaGold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OceanaGold has no effect on the direction of Argus Metals i.e., Argus Metals and OceanaGold go up and down completely randomly.
Pair Corralation between Argus Metals and OceanaGold
Assuming the 90 days horizon Argus Metals Corp is expected to generate 3.4 times more return on investment than OceanaGold. However, Argus Metals is 3.4 times more volatile than OceanaGold. It trades about 0.07 of its potential returns per unit of risk. OceanaGold is currently generating about 0.23 per unit of risk. If you would invest 12.00 in Argus Metals Corp on August 15, 2025 and sell it today you would earn a total of 2.00 from holding Argus Metals Corp or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Argus Metals Corp vs. OceanaGold
Performance |
| Timeline |
| Argus Metals Corp |
| OceanaGold |
Argus Metals and OceanaGold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argus Metals and OceanaGold
The main advantage of trading using opposite Argus Metals and OceanaGold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argus Metals position performs unexpectedly, OceanaGold 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 OceanaGold will offset losses from the drop in OceanaGold's long position.| Argus Metals vs. Canlan Ice Sports | Argus Metals vs. InPlay Oil Corp | Argus Metals vs. Talon Metals Corp | Argus Metals vs. Arbor Metals Corp |
| OceanaGold vs. Eldorado Gold Corp | OceanaGold vs. New Gold | OceanaGold vs. SSR Mining | OceanaGold vs. Perseus Mining |
Check out your portfolio center.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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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