Correlation Between American Clean and K92 Mining
Can any of the company-specific risk be diversified away by investing in both American Clean and K92 Mining 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 American Clean and K92 Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Clean Resources and K92 Mining, you can compare the effects of market volatilities on American Clean and K92 Mining 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 American Clean with a short position of K92 Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Clean and K92 Mining.
Diversification Opportunities for American Clean and K92 Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and K92 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Clean Resources and K92 Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on K92 Mining and American Clean 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 American Clean Resources are associated (or correlated) with K92 Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of K92 Mining has no effect on the direction of American Clean i.e., American Clean and K92 Mining go up and down completely randomly.
Pair Corralation between American Clean and K92 Mining
Given the investment horizon of 90 days American Clean Resources is expected to under-perform the K92 Mining. In addition to that, American Clean is 1.9 times more volatile than K92 Mining. It trades about 0.0 of its total potential returns per unit of risk. K92 Mining is currently generating about 0.06 per unit of volatility. If you would invest 488.00 in K92 Mining on November 9, 2024 and sell it today you would earn a total of 222.00 from holding K92 Mining or generate 45.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Clean Resources vs. K92 Mining
Performance |
| Timeline |
| American Clean Resources |
| K92 Mining |
American Clean and K92 Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Clean and K92 Mining
The main advantage of trading using opposite American Clean and K92 Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Clean position performs unexpectedly, K92 Mining 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 K92 Mining will offset losses from the drop in K92 Mining's long position.| American Clean vs. Gold79 Mines | American Clean vs. Arctic Star Exploration | American Clean vs. Arras Minerals Corp | American Clean vs. American Creek Resources |
| K92 Mining vs. I 80 Gold Corp | K92 Mining vs. Equinox Gold Corp | K92 Mining vs. Contango ORE | K92 Mining vs. Orla Mining |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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