Correlation Between Golden Tag and Kraken Energy
Can any of the company-specific risk be diversified away by investing in both Golden Tag and Kraken Energy 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 Tag and Kraken Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Tag Resources and Kraken Energy Corp, you can compare the effects of market volatilities on Golden Tag and Kraken Energy 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 Tag with a short position of Kraken Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Tag and Kraken Energy.
Diversification Opportunities for Golden Tag and Kraken Energy
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Golden and Kraken is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Golden Tag Resources and Kraken Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kraken Energy Corp and Golden Tag 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 Tag Resources are associated (or correlated) with Kraken Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kraken Energy Corp has no effect on the direction of Golden Tag i.e., Golden Tag and Kraken Energy go up and down completely randomly.
Pair Corralation between Golden Tag and Kraken Energy
If you would invest 2.61 in Kraken Energy Corp on November 4, 2024 and sell it today you would earn a total of 0.12 from holding Kraken Energy Corp or generate 4.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Golden Tag Resources vs. Kraken Energy Corp
Performance |
| Timeline |
| Golden Tag Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kraken Energy Corp |
Golden Tag and Kraken Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Tag and Kraken Energy
The main advantage of trading using opposite Golden Tag and Kraken Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Tag position performs unexpectedly, Kraken Energy 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 Kraken Energy will offset losses from the drop in Kraken Energy's long position.| Golden Tag vs. NorthIsle Copper and | Golden Tag vs. Lucky Minerals | Golden Tag vs. Niobay Metals | Golden Tag vs. Kraken Energy Corp |
| Kraken Energy vs. Avarone Metals | Kraken Energy vs. Adriatic Metals PLC | Kraken Energy vs. Aurelia Metals Limited | Kraken Energy vs. Huntsman Exploration |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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