Correlation Between Cassiar Gold and K92 Mining
Can any of the company-specific risk be diversified away by investing in both Cassiar Gold 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 Cassiar Gold and K92 Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cassiar Gold Corp and K92 Mining, you can compare the effects of market volatilities on Cassiar Gold 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 Cassiar Gold with a short position of K92 Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cassiar Gold and K92 Mining.
Diversification Opportunities for Cassiar Gold and K92 Mining
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cassiar and K92 is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Cassiar Gold Corp and K92 Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on K92 Mining and Cassiar Gold 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 Cassiar Gold Corp 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 Cassiar Gold i.e., Cassiar Gold and K92 Mining go up and down completely randomly.
Pair Corralation between Cassiar Gold and K92 Mining
Assuming the 90 days horizon Cassiar Gold Corp is expected to generate 2.57 times more return on investment than K92 Mining. However, Cassiar Gold is 2.57 times more volatile than K92 Mining. It trades about 0.15 of its potential returns per unit of risk. K92 Mining is currently generating about 0.13 per unit of risk. If you would invest 14.00 in Cassiar Gold Corp on November 27, 2024 and sell it today you would earn a total of 2.00 from holding Cassiar Gold Corp or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cassiar Gold Corp vs. K92 Mining
Performance |
| Timeline |
| Cassiar Gold Corp |
| K92 Mining |
Cassiar Gold and K92 Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cassiar Gold and K92 Mining
The main advantage of trading using opposite Cassiar Gold and K92 Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cassiar Gold 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.| Cassiar Gold vs. Independence Gold Corp | Cassiar Gold vs. Westward Gold | Cassiar Gold vs. Cabral Gold | Cassiar Gold vs. Revival Gold |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |