Correlation Between Benton Resources and Kesselrun Resources
Can any of the company-specific risk be diversified away by investing in both Benton Resources and Kesselrun 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 Benton Resources and Kesselrun Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benton Resources and Kesselrun Resources, you can compare the effects of market volatilities on Benton Resources and Kesselrun 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 Benton Resources with a short position of Kesselrun Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benton Resources and Kesselrun Resources.
Diversification Opportunities for Benton Resources and Kesselrun Resources
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Benton and Kesselrun is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Benton Resources and Kesselrun Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kesselrun Resources and Benton Resources 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 Benton Resources are associated (or correlated) with Kesselrun Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kesselrun Resources has no effect on the direction of Benton Resources i.e., Benton Resources and Kesselrun Resources go up and down completely randomly.
Pair Corralation between Benton Resources and Kesselrun Resources
Assuming the 90 days horizon Benton Resources is expected to generate 14.52 times less return on investment than Kesselrun Resources. But when comparing it to its historical volatility, Benton Resources is 2.54 times less risky than Kesselrun Resources. It trades about 0.02 of its potential returns per unit of risk. Kesselrun Resources is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3.50 in Kesselrun Resources on November 28, 2024 and sell it today you would earn a total of 0.50 from holding Kesselrun Resources or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Benton Resources vs. Kesselrun Resources
Performance |
| Timeline |
| Benton Resources |
| Kesselrun Resources |
Benton Resources and Kesselrun Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benton Resources and Kesselrun Resources
The main advantage of trading using opposite Benton Resources and Kesselrun Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benton Resources position performs unexpectedly, Kesselrun 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 Kesselrun Resources will offset losses from the drop in Kesselrun Resources' long position.| Benton Resources vs. Avrupa Minerals | Benton Resources vs. Maritime Resources Corp | Benton Resources vs. Chibougamau Independent Mines | Benton Resources vs. Angkor Resources Corp |
| Kesselrun Resources vs. Magnum Goldcorp | Kesselrun Resources vs. Lupaka Gold Corp | Kesselrun Resources vs. Black Widow Resources |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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