Correlation Between Europac Gold and Kopernik Global
Can any of the company-specific risk be diversified away by investing in both Europac Gold and Kopernik Global 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 Europac Gold and Kopernik Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Europac Gold Fund and Kopernik Global All Cap, you can compare the effects of market volatilities on Europac Gold and Kopernik Global 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 Europac Gold with a short position of Kopernik Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Europac Gold and Kopernik Global.
Diversification Opportunities for Europac Gold and Kopernik Global
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Europac and Kopernik is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Europac Gold Fund and Kopernik Global All Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kopernik Global All and Europac 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 Europac Gold Fund are associated (or correlated) with Kopernik Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kopernik Global All has no effect on the direction of Europac Gold i.e., Europac Gold and Kopernik Global go up and down completely randomly.
Pair Corralation between Europac Gold and Kopernik Global
Assuming the 90 days horizon Europac Gold Fund is expected to generate 1.94 times more return on investment than Kopernik Global. However, Europac Gold is 1.94 times more volatile than Kopernik Global All Cap. It trades about 0.03 of its potential returns per unit of risk. Kopernik Global All Cap is currently generating about 0.01 per unit of risk. If you would invest 919.00 in Europac Gold Fund on August 29, 2024 and sell it today you would earn a total of 186.00 from holding Europac Gold Fund or generate 20.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Europac Gold Fund vs. Kopernik Global All Cap
Performance |
| Timeline |
| Europac Gold |
| Kopernik Global All |
Europac Gold and Kopernik Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Europac Gold and Kopernik Global
The main advantage of trading using opposite Europac Gold and Kopernik Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europac Gold position performs unexpectedly, Kopernik Global 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 Kopernik Global will offset losses from the drop in Kopernik Global's long position.| Europac Gold vs. First Eagle Gold | Europac Gold vs. Oppenheimer Gold Special | Europac Gold vs. Aquagold International | Europac Gold vs. Morningstar Unconstrained Allocation |
| Kopernik Global vs. Gabelli Gold Fund | Kopernik Global vs. Invesco Gold Special | Kopernik Global vs. International Investors Gold | Kopernik Global vs. Europac Gold Fund |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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