Correlation Between Contango ORE and I 80

Can any of the company-specific risk be diversified away by investing in both Contango ORE and I 80 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 Contango ORE and I 80 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Contango ORE and i 80 Gold Corp, you can compare the effects of market volatilities on Contango ORE and I 80 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 Contango ORE with a short position of I 80. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contango ORE and I 80.

Diversification Opportunities for Contango ORE and I 80

0.59

Correlation Coefficient

Contango ORE  I 80

Very weak diversification

The 3 months correlation between Contango and IAUX is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Contango ORE and i 80 Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on i 80 Gold and Contango ORE 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 Contango ORE are associated (or correlated) with I 80. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of i 80 Gold has no effect on the direction of Contango ORE i.e., Contango ORE and I 80 go up and down completely randomly.

Pair Corralation between Contango ORE and I 80

Given the investment horizon of 90 days Contango ORE is expected to generate 1.07 times more return on investment than I 80. However, Contango ORE is 1.07 times more volatile than i 80 Gold Corp. It trades about 0.2 of its potential returns per unit of risk. i 80 Gold Corp is currently generating about 0.11 per unit of risk. If you would invest  1,286  in Contango ORE on May 11, 2025 and sell it today you would earn a total of  704.00  from holding Contango ORE or generate 54.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Contango ORE  vs.  i 80 Gold Corp

Contango ORE

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Contango ORE are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent technical and fundamental indicators, Contango ORE displayed solid returns over the last few months and may actually be approaching a breakup point.

i 80 Gold

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in i 80 Gold Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, I 80 showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Contango ORE and I 80

The main advantage of trading using opposite Contango ORE and I 80 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contango ORE position performs unexpectedly, I 80 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 I 80 will offset losses from the drop in I 80's long position.

The idea behind Contango ORE and i 80 Gold Corp 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..