Correlation Between Gold Springs and KORE Mining
Can any of the company-specific risk be diversified away by investing in both Gold Springs 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 Gold Springs and KORE Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gold Springs Resource and KORE Mining, you can compare the effects of market volatilities on Gold Springs 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 Gold Springs with a short position of KORE Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Springs and KORE Mining.
Diversification Opportunities for Gold Springs and KORE Mining
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gold and KORE is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Gold Springs Resource and KORE Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KORE Mining and Gold Springs 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 Springs Resource 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 Gold Springs i.e., Gold Springs and KORE Mining go up and down completely randomly.
Pair Corralation between Gold Springs and KORE Mining
Assuming the 90 days horizon Gold Springs is expected to generate 2.41 times less return on investment than KORE Mining. But when comparing it to its historical volatility, Gold Springs Resource is 1.29 times less risky than KORE Mining. It trades about 0.03 of its potential returns per unit of risk. KORE Mining is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1.90 in KORE Mining on August 29, 2024 and sell it today you would earn a total of 0.64 from holding KORE Mining or generate 33.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gold Springs Resource vs. KORE Mining
Performance |
| Timeline |
| Gold Springs Resource |
| KORE Mining |
Gold Springs and KORE Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold Springs and KORE Mining
The main advantage of trading using opposite Gold Springs and KORE Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Springs 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.| Gold Springs vs. Palamina Corp | Gold Springs vs. BTU Metals Corp | Gold Springs vs. Norsemont Mining | Gold Springs vs. FireFox Gold Corp |
| KORE Mining vs. Aurion Resources | KORE Mining vs. Liberty Gold Corp | KORE Mining vs. Orezone Gold Corp | KORE Mining vs. Fortuna Silver Mines |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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