Correlation Between Champion Iron and Kore Mining
Can any of the company-specific risk be diversified away by investing in both Champion Iron and Kore 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 Champion Iron and Kore Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champion Iron and Kore Mining, you can compare the effects of market volatilities on Champion Iron and Kore 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 Champion Iron with a short position of Kore Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champion Iron and Kore Mining.
Diversification Opportunities for Champion Iron and Kore Mining
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Champion and Kore is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Champion Iron and Kore Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kore Mining and Champion Iron 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 Champion Iron are associated (or correlated) with Kore Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kore Mining has no effect on the direction of Champion Iron i.e., Champion Iron and Kore Mining go up and down completely randomly.
Pair Corralation between Champion Iron and Kore Mining
Assuming the 90 days trading horizon Champion Iron is expected to under-perform the Kore Mining. But the stock apears to be less risky and, when comparing its historical volatility, Champion Iron is 3.31 times less risky than Kore Mining. The stock trades about 0.0 of its potential returns per unit of risk. The Kore Mining is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3.00 in Kore Mining on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Kore Mining or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Champion Iron vs. Kore Mining
Performance |
| Timeline |
| Champion Iron |
| Kore Mining |
Champion Iron and Kore Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champion Iron and Kore Mining
The main advantage of trading using opposite Champion Iron and Kore Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champion Iron position performs unexpectedly, Kore 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 Kore Mining will offset losses from the drop in Kore Mining's long position.| Champion Iron vs. Black Iron | Champion Iron vs. Wesdome Gold Mines | Champion Iron vs. GoGold Resources | Champion Iron vs. Mason Graphite |
| Kore Mining vs. Algoma Steel Group | Kore Mining vs. Champion Iron | Kore Mining vs. International Zeolite Corp | Kore Mining vs. European Residential Real |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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