Correlation Between Hummingbird Resources and K92 Mining
Can any of the company-specific risk be diversified away by investing in both Hummingbird Resources and K92 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 Hummingbird Resources and K92 Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hummingbird Resources PLC and K92 Mining, you can compare the effects of market volatilities on Hummingbird Resources and K92 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 Hummingbird Resources with a short position of K92 Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hummingbird Resources and K92 Mining.
Diversification Opportunities for Hummingbird Resources and K92 Mining
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hummingbird and K92 is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Hummingbird Resources PLC and K92 Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on K92 Mining and Hummingbird 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 Hummingbird Resources PLC are associated (or correlated) with K92 Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of K92 Mining has no effect on the direction of Hummingbird Resources i.e., Hummingbird Resources and K92 Mining go up and down completely randomly.
Pair Corralation between Hummingbird Resources and K92 Mining
Assuming the 90 days horizon Hummingbird Resources PLC is expected to under-perform the K92 Mining. In addition to that, Hummingbird Resources is 6.79 times more volatile than K92 Mining. It trades about -0.23 of its total potential returns per unit of risk. K92 Mining is currently generating about -0.05 per unit of volatility. If you would invest 665.00 in K92 Mining on September 1, 2024 and sell it today you would lose (22.00) from holding K92 Mining or give up 3.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hummingbird Resources PLC vs. K92 Mining
Performance |
| Timeline |
| Hummingbird Resources PLC |
| K92 Mining |
Hummingbird Resources and K92 Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hummingbird Resources and K92 Mining
The main advantage of trading using opposite Hummingbird Resources and K92 Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hummingbird Resources position performs unexpectedly, K92 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 K92 Mining will offset losses from the drop in K92 Mining's long position.| Hummingbird Resources vs. Fremont Gold | Hummingbird Resources vs. Norsemont Mining | Hummingbird Resources vs. Tudor Gold Corp | Hummingbird Resources vs. Japan Gold Corp |
| K92 Mining vs. South32 Limited | K92 Mining vs. NioCorp Developments Ltd | K92 Mining vs. HUMANA INC | K92 Mining vs. SCOR PK |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |