Correlation Between Dakota Gold and Kinross Gold
Can any of the company-specific risk be diversified away by investing in both Dakota Gold and Kinross Gold 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 Dakota Gold and Kinross Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dakota Gold Corp and Kinross Gold, you can compare the effects of market volatilities on Dakota Gold and Kinross Gold 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 Dakota Gold with a short position of Kinross Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dakota Gold and Kinross Gold.
Diversification Opportunities for Dakota Gold and Kinross Gold
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dakota and Kinross is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Dakota Gold Corp and Kinross Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinross Gold and Dakota 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 Dakota Gold Corp are associated (or correlated) with Kinross Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinross Gold has no effect on the direction of Dakota Gold i.e., Dakota Gold and Kinross Gold go up and down completely randomly.
Pair Corralation between Dakota Gold and Kinross Gold
Allowing for the 90-day total investment horizon Dakota Gold is expected to generate 6.15 times less return on investment than Kinross Gold. In addition to that, Dakota Gold is 1.35 times more volatile than Kinross Gold. It trades about 0.01 of its total potential returns per unit of risk. Kinross Gold is currently generating about 0.12 per unit of volatility. If you would invest 535.00 in Kinross Gold on October 20, 2024 and sell it today you would earn a total of 496.00 from holding Kinross Gold or generate 92.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dakota Gold Corp vs. Kinross Gold
Performance |
| Timeline |
| Dakota Gold Corp |
| Kinross Gold |
Dakota Gold and Kinross Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dakota Gold and Kinross Gold
The main advantage of trading using opposite Dakota Gold and Kinross Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dakota Gold position performs unexpectedly, Kinross Gold 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 Kinross Gold will offset losses from the drop in Kinross Gold's long position.| Dakota Gold vs. Osisko Development Corp | Dakota Gold vs. Osisko Development Corp | Dakota Gold vs. Gold Royalty Corp | Dakota Gold vs. Carbon Streaming Corp |
| Kinross Gold vs. Pan American Silver | Kinross Gold vs. Newmont Goldcorp Corp | Kinross Gold vs. Wheaton Precious Metals | Kinross Gold vs. Franco Nevada |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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