Correlation Between Orezone Gold and Fortuna Silver

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Orezone Gold and Fortuna Silver 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 Orezone Gold and Fortuna Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orezone Gold Corp and Fortuna Silver Mines, you can compare the effects of market volatilities on Orezone Gold and Fortuna Silver 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 Orezone Gold with a short position of Fortuna Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orezone Gold and Fortuna Silver.

Diversification Opportunities for Orezone Gold and Fortuna Silver

0.61
  Correlation Coefficient

Poor diversification

The 3 months correlation between Orezone and Fortuna is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Orezone Gold Corp and Fortuna Silver Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortuna Silver Mines and Orezone Gold 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 Orezone Gold Corp are associated (or correlated) with Fortuna Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortuna Silver Mines has no effect on the direction of Orezone Gold i.e., Orezone Gold and Fortuna Silver go up and down completely randomly.

Pair Corralation between Orezone Gold and Fortuna Silver

Assuming the 90 days trading horizon Orezone Gold is expected to generate 3.18 times less return on investment than Fortuna Silver. But when comparing it to its historical volatility, Orezone Gold Corp is 1.0 times less risky than Fortuna Silver. It trades about 0.02 of its potential returns per unit of risk. Fortuna Silver Mines is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  847.00  in Fortuna Silver Mines on April 23, 2025 and sell it today you would earn a total of  74.00  from holding Fortuna Silver Mines or generate 8.74% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Orezone Gold Corp  vs.  Fortuna Silver Mines

 Performance 
       Timeline  
Orezone Gold Corp 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Orezone Gold Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy technical and fundamental indicators, Orezone Gold is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.
Fortuna Silver Mines 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Fortuna Silver Mines are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating forward indicators, Fortuna Silver may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Orezone Gold and Fortuna Silver Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Orezone Gold and Fortuna Silver

The main advantage of trading using opposite Orezone Gold and Fortuna Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orezone Gold position performs unexpectedly, Fortuna Silver 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 Fortuna Silver will offset losses from the drop in Fortuna Silver's long position.
The idea behind Orezone Gold Corp and Fortuna Silver Mines 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.
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

Other Complementary Tools

Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Commodity Directory
Find actively traded commodities issued by global exchanges
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Fundamental Analysis
View fundamental data based on most recent published financial statements
Content Syndication
Quickly integrate customizable finance content to your own investment portal