Correlation Between Almaden Minerals and Karora Resources
Can any of the company-specific risk be diversified away by investing in both Almaden Minerals and Karora Resources 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 Almaden Minerals and Karora Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Almaden Minerals and Karora Resources, you can compare the effects of market volatilities on Almaden Minerals and Karora Resources 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 Almaden Minerals with a short position of Karora Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Almaden Minerals and Karora Resources.
Diversification Opportunities for Almaden Minerals and Karora Resources
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Almaden and Karora is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Almaden Minerals and Karora Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karora Resources and Almaden Minerals 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 Almaden Minerals are associated (or correlated) with Karora Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Karora Resources has no effect on the direction of Almaden Minerals i.e., Almaden Minerals and Karora Resources go up and down completely randomly.
Pair Corralation between Almaden Minerals and Karora Resources
Considering the 90-day investment horizon Almaden Minerals is expected to under-perform the Karora Resources. In addition to that, Almaden Minerals is 1.54 times more volatile than Karora Resources. It trades about -0.07 of its total potential returns per unit of risk. Karora Resources is currently generating about 0.05 per unit of volatility. If you would invest 321.00 in Karora Resources on November 2, 2024 and sell it today you would earn a total of 162.00 from holding Karora Resources or generate 50.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 30.19% |
| Values | Daily Returns |
Almaden Minerals vs. Karora Resources
Performance |
| Timeline |
| Almaden Minerals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Karora Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Almaden Minerals and Karora Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Almaden Minerals and Karora Resources
The main advantage of trading using opposite Almaden Minerals and Karora Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Almaden Minerals position performs unexpectedly, Karora Resources 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 Karora Resources will offset losses from the drop in Karora Resources' long position.| Almaden Minerals vs. Antioquia Gold | Almaden Minerals vs. Asante Gold | Almaden Minerals vs. Bluestone Resources | Almaden Minerals vs. Big Ridge Gold |
| Karora Resources vs. K92 Mining | Karora Resources vs. I 80 Gold Corp | Karora Resources vs. Wesdome Gold Mines | Karora Resources vs. GGX Gold Corp |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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