Correlation Between Jaguar Mining and Karora Resources
Can any of the company-specific risk be diversified away by investing in both Jaguar Mining and Karora Resources 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 Jaguar Mining and Karora Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jaguar Mining and Karora Resources, you can compare the effects of market volatilities on Jaguar Mining and Karora Resources 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 Jaguar Mining with a short position of Karora Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaguar Mining and Karora Resources.
Diversification Opportunities for Jaguar Mining and Karora Resources
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jaguar and Karora is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Jaguar Mining and Karora Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karora Resources and Jaguar Mining 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 Jaguar Mining are associated (or correlated) with Karora Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Karora Resources has no effect on the direction of Jaguar Mining i.e., Jaguar Mining and Karora Resources go up and down completely randomly.
Pair Corralation between Jaguar Mining and Karora Resources
Assuming the 90 days horizon Jaguar Mining is expected to generate 1.44 times more return on investment than Karora Resources. However, Jaguar Mining is 1.44 times more volatile than Karora Resources. It trades about 0.04 of its potential returns per unit of risk. Karora Resources is currently generating about 0.04 per unit of risk. If you would invest 197.00 in Jaguar Mining on August 26, 2024 and sell it today you would earn a total of 74.00 from holding Jaguar Mining or generate 37.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 79.95% |
| Values | Daily Returns |
Jaguar Mining vs. Karora Resources
Performance |
| Timeline |
| Jaguar Mining |
| Karora Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jaguar Mining and Karora Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jaguar Mining and Karora Resources
The main advantage of trading using opposite Jaguar Mining and Karora Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaguar Mining position performs unexpectedly, Karora Resources 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 Karora Resources will offset losses from the drop in Karora Resources' long position.| Jaguar Mining vs. Ascendant Resources | Jaguar Mining vs. Cantex Mine Development | Jaguar Mining vs. Amarc Resources | Jaguar Mining vs. Sterling Metals Corp |
| Karora Resources vs. K92 Mining | Karora Resources vs. I 80 Gold Corp | Karora Resources vs. Wesdome Gold Mines | Karora Resources vs. GGX Gold 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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