Correlation Between Gold79 Mines and Kodiak Copper
Can any of the company-specific risk be diversified away by investing in both Gold79 Mines and Kodiak Copper 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 Gold79 Mines and Kodiak Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gold79 Mines and Kodiak Copper Corp, you can compare the effects of market volatilities on Gold79 Mines and Kodiak Copper 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 Gold79 Mines with a short position of Kodiak Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold79 Mines and Kodiak Copper.
Diversification Opportunities for Gold79 Mines and Kodiak Copper
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gold79 and Kodiak is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Gold79 Mines and Kodiak Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kodiak Copper Corp and Gold79 Mines 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 Gold79 Mines are associated (or correlated) with Kodiak Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kodiak Copper Corp has no effect on the direction of Gold79 Mines i.e., Gold79 Mines and Kodiak Copper go up and down completely randomly.
Pair Corralation between Gold79 Mines and Kodiak Copper
Assuming the 90 days horizon Gold79 Mines is expected to generate 1.58 times more return on investment than Kodiak Copper. However, Gold79 Mines is 1.58 times more volatile than Kodiak Copper Corp. It trades about 0.11 of its potential returns per unit of risk. Kodiak Copper Corp is currently generating about -0.05 per unit of risk. If you would invest 18.00 in Gold79 Mines on August 30, 2024 and sell it today you would earn a total of 4.00 from holding Gold79 Mines or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gold79 Mines vs. Kodiak Copper Corp
Performance |
| Timeline |
| Gold79 Mines |
| Kodiak Copper Corp |
Gold79 Mines and Kodiak Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold79 Mines and Kodiak Copper
The main advantage of trading using opposite Gold79 Mines and Kodiak Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold79 Mines position performs unexpectedly, Kodiak Copper 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 Kodiak Copper will offset losses from the drop in Kodiak Copper's long position.| Gold79 Mines vs. Arctic Star Exploration | Gold79 Mines vs. American Clean Resources | Gold79 Mines vs. Arras Minerals Corp | Gold79 Mines vs. American Creek Resources |
| Kodiak Copper vs. Silver Tiger Metals | Kodiak Copper vs. P2 Gold | Kodiak Copper vs. Integra Resources Corp | Kodiak Copper vs. SilverCrest Metals |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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