Correlation Between Empire Global and Orezone Gold

Can any of the company-specific risk be diversified away by investing in both Empire Global and Orezone 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 Empire Global and Orezone Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Empire Global and Orezone Gold

0.0

Correlation Coefficient

Empire Global  Orezone Gold

Pay attention - limited upside

The 3 months correlation between Empire and Orezone is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Empire Global Gaming and Orezone Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orezone Gold Corp and Empire Global 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 Empire Global Gaming are associated (or correlated) with Orezone Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orezone Gold Corp has no effect on the direction of Empire Global i.e., Empire Global and Orezone Gold go up and down completely randomly.

Pair Corralation between Empire Global and Orezone Gold

If you would invest  45.00  in Orezone Gold Corp on January 12, 2025 and sell it today you would earn a total of  33.00  from holding Orezone Gold Corp or generate 73.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	6.35%
Values	Daily Returns

Empire Global Gaming  vs.  Orezone Gold Corp

Empire Global Gaming

Risk-Adjusted Performance

Very Weak

Over the last 90 days Empire Global Gaming has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Empire Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Orezone Gold Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Orezone Gold Corp are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental indicators, Orezone Gold reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Empire Global and Orezone Gold

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

The idea behind Empire Global Gaming and Orezone 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.