Correlation Between Outback Goldfields and Labrador Gold
Can any of the company-specific risk be diversified away by investing in both Outback Goldfields and Labrador 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 Outback Goldfields and Labrador Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Outback Goldfields Corp and Labrador Gold Corp, you can compare the effects of market volatilities on Outback Goldfields and Labrador 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 Outback Goldfields with a short position of Labrador Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Outback Goldfields and Labrador Gold.
Diversification Opportunities for Outback Goldfields and Labrador Gold
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Outback and Labrador is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Outback Goldfields Corp and Labrador Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Labrador Gold Corp and Outback Goldfields 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 Outback Goldfields Corp are associated (or correlated) with Labrador Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Labrador Gold Corp has no effect on the direction of Outback Goldfields i.e., Outback Goldfields and Labrador Gold go up and down completely randomly.
Pair Corralation between Outback Goldfields and Labrador Gold
Assuming the 90 days horizon Outback Goldfields Corp is expected to generate 2.37 times more return on investment than Labrador Gold. However, Outback Goldfields is 2.37 times more volatile than Labrador Gold Corp. It trades about 0.07 of its potential returns per unit of risk. Labrador Gold Corp is currently generating about 0.05 per unit of risk. If you would invest 27.00 in Outback Goldfields Corp on July 25, 2025 and sell it today you would earn a total of 3.00 from holding Outback Goldfields Corp or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.24% |
| Values | Daily Returns |
Outback Goldfields Corp vs. Labrador Gold Corp
Performance |
| Timeline |
| Outback Goldfields Corp |
| Labrador Gold Corp |
Outback Goldfields and Labrador Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Outback Goldfields and Labrador Gold
The main advantage of trading using opposite Outback Goldfields and Labrador Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Outback Goldfields position performs unexpectedly, Labrador 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 Labrador Gold will offset losses from the drop in Labrador Gold's long position.| Outback Goldfields vs. Labrador Gold Corp | Outback Goldfields vs. CANEX Metals | Outback Goldfields vs. Orefinders Resources | Outback Goldfields vs. Marvel Gold Limited |
| Labrador Gold vs. Outback Goldfields Corp | Labrador Gold vs. Orefinders Resources | Labrador Gold vs. CANEX Metals | Labrador Gold vs. Marvel Gold Limited |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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