Correlation Between Kodiak Copper and Dore Copper
Can any of the company-specific risk be diversified away by investing in both Kodiak Copper and Dore 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 Kodiak Copper and Dore Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kodiak Copper Corp and Dore Copper Mining, you can compare the effects of market volatilities on Kodiak Copper and Dore 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 Kodiak Copper with a short position of Dore Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kodiak Copper and Dore Copper.
Diversification Opportunities for Kodiak Copper and Dore Copper
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kodiak and Dore is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Kodiak Copper Corp and Dore Copper Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dore Copper Mining and Kodiak Copper 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 Kodiak Copper Corp are associated (or correlated) with Dore Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dore Copper Mining has no effect on the direction of Kodiak Copper i.e., Kodiak Copper and Dore Copper go up and down completely randomly.
Pair Corralation between Kodiak Copper and Dore Copper
Assuming the 90 days horizon Kodiak Copper Corp is expected to generate 0.56 times more return on investment than Dore Copper. However, Kodiak Copper Corp is 1.8 times less risky than Dore Copper. It trades about -0.15 of its potential returns per unit of risk. Dore Copper Mining is currently generating about -0.21 per unit of risk. If you would invest 45.00 in Kodiak Copper Corp on August 25, 2024 and sell it today you would lose (4.00) from holding Kodiak Copper Corp or give up 8.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kodiak Copper Corp vs. Dore Copper Mining
Performance |
| Timeline |
| Kodiak Copper Corp |
| Dore Copper Mining |
Kodiak Copper and Dore Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kodiak Copper and Dore Copper
The main advantage of trading using opposite Kodiak Copper and Dore Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kodiak Copper position performs unexpectedly, Dore 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 Dore Copper will offset losses from the drop in Dore Copper's long position.| Kodiak Copper vs. Fireweed Zinc | Kodiak Copper vs. Redishred Capital Corp | Kodiak Copper vs. Surge Copper Corp | Kodiak Copper vs. Blackrock Silver Corp |
| Dore Copper vs. First Majestic Silver | Dore Copper vs. Ivanhoe Energy | Dore Copper vs. Orezone Gold Corp | Dore Copper vs. Faraday Copper 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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