Correlation Between Integra Resources and Kodiak Copper
Can any of the company-specific risk be diversified away by investing in both Integra Resources and Kodiak Copper 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 Integra Resources and Kodiak Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integra Resources Corp and Kodiak Copper Corp, you can compare the effects of market volatilities on Integra Resources and Kodiak Copper 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 Integra Resources with a short position of Kodiak Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra Resources and Kodiak Copper.
Diversification Opportunities for Integra Resources and Kodiak Copper
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Integra and Kodiak is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Integra Resources Corp and Kodiak Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kodiak Copper Corp and Integra 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 Integra Resources Corp are associated (or correlated) with Kodiak Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kodiak Copper Corp has no effect on the direction of Integra Resources i.e., Integra Resources and Kodiak Copper go up and down completely randomly.
Pair Corralation between Integra Resources and Kodiak Copper
Given the investment horizon of 90 days Integra Resources Corp is expected to under-perform the Kodiak Copper. In addition to that, Integra Resources is 1.02 times more volatile than Kodiak Copper Corp. It trades about -0.4 of its total potential returns per unit of risk. Kodiak Copper Corp is currently generating about -0.17 per unit of volatility. If you would invest 34.00 in Kodiak Copper Corp on August 28, 2024 and sell it today you would lose (4.00) from holding Kodiak Copper Corp or give up 11.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Integra Resources Corp vs. Kodiak Copper Corp
Performance |
| Timeline |
| Integra Resources Corp |
| Kodiak Copper Corp |
Integra Resources and Kodiak Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integra Resources and Kodiak Copper
The main advantage of trading using opposite Integra Resources and Kodiak Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra Resources position performs unexpectedly, Kodiak Copper 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 Kodiak Copper will offset losses from the drop in Kodiak Copper's long position.| Integra Resources vs. Silver Tiger Metals | Integra Resources vs. Defiance Silver Corp | Integra Resources vs. Summa Silver Corp | Integra Resources vs. AbraSilver Resource Corp |
| Kodiak Copper vs. Morningstar Unconstrained Allocation | Kodiak Copper vs. High Yield Municipal Fund | Kodiak Copper vs. Knife River | Kodiak Copper vs. Klckner Co SE |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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