Correlation Between Goliath Resources and Kodiak Copper
Can any of the company-specific risk be diversified away by investing in both Goliath Resources and Kodiak Copper 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 Goliath Resources and Kodiak Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goliath Resources Limited and Kodiak Copper Corp, you can compare the effects of market volatilities on Goliath Resources and Kodiak Copper 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 Goliath Resources with a short position of Kodiak Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goliath Resources and Kodiak Copper.
Diversification Opportunities for Goliath Resources and Kodiak Copper
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Goliath and Kodiak is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Goliath Resources Limited and Kodiak Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kodiak Copper Corp and Goliath Resources 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 Goliath Resources Limited are associated (or correlated) with Kodiak Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kodiak Copper Corp has no effect on the direction of Goliath Resources i.e., Goliath Resources and Kodiak Copper go up and down completely randomly.
Pair Corralation between Goliath Resources and Kodiak Copper
Assuming the 90 days horizon Goliath Resources Limited is expected to under-perform the Kodiak Copper. But the otc stock apears to be less risky and, when comparing its historical volatility, Goliath Resources Limited is 1.1 times less risky than Kodiak Copper. The otc stock trades about -0.09 of its potential returns per unit of risk. The Kodiak Copper Corp is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 33.00 in Kodiak Copper Corp on August 30, 2024 and sell it today you would lose (3.00) from holding Kodiak Copper Corp or give up 9.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goliath Resources Limited vs. Kodiak Copper Corp
Performance |
| Timeline |
| Goliath Resources |
| Kodiak Copper Corp |
Goliath Resources and Kodiak Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goliath Resources and Kodiak Copper
The main advantage of trading using opposite Goliath Resources and Kodiak Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goliath Resources position performs unexpectedly, Kodiak Copper 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 Kodiak Copper will offset losses from the drop in Kodiak Copper's long position.| Goliath Resources vs. Gold79 Mines | Goliath Resources vs. Cartier Iron Corp | Goliath Resources vs. Arctic Star Exploration | Goliath Resources vs. Arras Minerals Corp |
| Kodiak Copper vs. Silver Tiger Metals | Kodiak Copper vs. P2 Gold | Kodiak Copper vs. Integra Resources Corp | Kodiak Copper vs. SilverCrest Metals |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |