Correlation Between Independence Gold and KORE Mining
Can any of the company-specific risk be diversified away by investing in both Independence Gold 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 Independence Gold and KORE Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Independence Gold Corp and KORE Mining, you can compare the effects of market volatilities on Independence Gold 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 Independence Gold with a short position of KORE Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Independence Gold and KORE Mining.
Diversification Opportunities for Independence Gold and KORE Mining
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Independence and KORE is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Independence Gold Corp and KORE Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KORE Mining and Independence Gold 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 Independence Gold Corp 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 Independence Gold i.e., Independence Gold and KORE Mining go up and down completely randomly.
Pair Corralation between Independence Gold and KORE Mining
Assuming the 90 days horizon Independence Gold Corp is expected to generate 0.44 times more return on investment than KORE Mining. However, Independence Gold Corp is 2.26 times less risky than KORE Mining. It trades about -0.15 of its potential returns per unit of risk. KORE Mining is currently generating about -0.08 per unit of risk. If you would invest 19.00 in Independence Gold Corp on September 1, 2024 and sell it today you would lose (3.00) from holding Independence Gold Corp or give up 15.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Independence Gold Corp vs. KORE Mining
Performance |
| Timeline |
| Independence Gold Corp |
| KORE Mining |
Independence Gold and KORE Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Independence Gold and KORE Mining
The main advantage of trading using opposite Independence Gold and KORE Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Independence Gold 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.| Independence Gold vs. South32 Limited | Independence Gold vs. NioCorp Developments Ltd | Independence Gold vs. HUMANA INC | Independence Gold vs. SCOR PK |
| KORE Mining vs. Aurion Resources | KORE Mining vs. Rio2 Limited | KORE Mining vs. Palamina Corp | KORE Mining vs. BTU Metals 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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