Correlation Between Golden Arrow and Kiplin Metals
Can any of the company-specific risk be diversified away by investing in both Golden Arrow and Kiplin Metals 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 Golden Arrow and Kiplin Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Arrow Resources and Kiplin Metals, you can compare the effects of market volatilities on Golden Arrow and Kiplin Metals 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 Golden Arrow with a short position of Kiplin Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Arrow and Kiplin Metals.
Diversification Opportunities for Golden Arrow and Kiplin Metals
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Golden and Kiplin is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Golden Arrow Resources and Kiplin Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kiplin Metals and Golden Arrow 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 Golden Arrow Resources are associated (or correlated) with Kiplin Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kiplin Metals has no effect on the direction of Golden Arrow i.e., Golden Arrow and Kiplin Metals go up and down completely randomly.
Pair Corralation between Golden Arrow and Kiplin Metals
Assuming the 90 days horizon Golden Arrow Resources is expected to generate 1.91 times more return on investment than Kiplin Metals. However, Golden Arrow is 1.91 times more volatile than Kiplin Metals. It trades about 0.15 of its potential returns per unit of risk. Kiplin Metals is currently generating about -0.13 per unit of risk. If you would invest 4.00 in Golden Arrow Resources on September 1, 2024 and sell it today you would earn a total of 1.00 from holding Golden Arrow Resources or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Arrow Resources vs. Kiplin Metals
Performance |
| Timeline |
| Golden Arrow Resources |
| Kiplin Metals |
Golden Arrow and Kiplin Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Arrow and Kiplin Metals
The main advantage of trading using opposite Golden Arrow and Kiplin Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Arrow position performs unexpectedly, Kiplin Metals 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 Kiplin Metals will offset losses from the drop in Kiplin Metals' long position.| Golden Arrow vs. Kiplin Metals | Golden Arrow vs. Pure Energy Minerals | Golden Arrow vs. Noram Lithium Corp | Golden Arrow vs. Minnova Corp |
| Kiplin Metals vs. First Majestic Silver | Kiplin Metals vs. Ivanhoe Energy | Kiplin Metals vs. Orezone Gold Corp | Kiplin Metals vs. Faraday Copper Corp |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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