Correlation Between Gold Fields and KORE Group
Can any of the company-specific risk be diversified away by investing in both Gold Fields and KORE Group 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 Gold Fields and KORE Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gold Fields Ltd and KORE Group Holdings, you can compare the effects of market volatilities on Gold Fields and KORE Group 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 Gold Fields with a short position of KORE Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Fields and KORE Group.
Diversification Opportunities for Gold Fields and KORE Group
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gold and KORE is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Gold Fields Ltd and KORE Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KORE Group Holdings and Gold Fields 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 Gold Fields Ltd are associated (or correlated) with KORE Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KORE Group Holdings has no effect on the direction of Gold Fields i.e., Gold Fields and KORE Group go up and down completely randomly.
Pair Corralation between Gold Fields and KORE Group
Considering the 90-day investment horizon Gold Fields is expected to generate 3.26 times less return on investment than KORE Group. But when comparing it to its historical volatility, Gold Fields Ltd is 3.0 times less risky than KORE Group. It trades about 0.02 of its potential returns per unit of risk. KORE Group Holdings is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 289.00 in KORE Group Holdings on August 24, 2024 and sell it today you would lose (103.00) from holding KORE Group Holdings or give up 35.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gold Fields Ltd vs. KORE Group Holdings
Performance |
| Timeline |
| Gold Fields |
| KORE Group Holdings |
Gold Fields and KORE Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold Fields and KORE Group
The main advantage of trading using opposite Gold Fields and KORE Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Fields position performs unexpectedly, KORE Group 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 Group will offset losses from the drop in KORE Group's long position.| Gold Fields vs. Agnico Eagle Mines | Gold Fields vs. Kinross Gold | Gold Fields vs. Harmony Gold Mining | Gold Fields vs. Franco Nevada |
| KORE Group vs. Eshallgo Class A | KORE Group vs. Amtech Systems | KORE Group vs. Gold Fields Ltd | KORE Group vs. Aegean Airlines SA |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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