Correlation Between Kodiak Copper and Arctic Star
Can any of the company-specific risk be diversified away by investing in both Kodiak Copper and Arctic Star 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 Arctic Star 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 Arctic Star Exploration, you can compare the effects of market volatilities on Kodiak Copper and Arctic Star 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 Arctic Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kodiak Copper and Arctic Star.
Diversification Opportunities for Kodiak Copper and Arctic Star
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kodiak and Arctic is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Kodiak Copper Corp and Arctic Star Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arctic Star Exploration 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 Arctic Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arctic Star Exploration has no effect on the direction of Kodiak Copper i.e., Kodiak Copper and Arctic Star go up and down completely randomly.
Pair Corralation between Kodiak Copper and Arctic Star
Assuming the 90 days horizon Kodiak Copper Corp is expected to under-perform the Arctic Star. But the otc stock apears to be less risky and, when comparing its historical volatility, Kodiak Copper Corp is 1.31 times less risky than Arctic Star. The otc stock trades about -0.05 of its potential returns per unit of risk. The Arctic Star Exploration is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 0.94 in Arctic Star Exploration on August 30, 2024 and sell it today you would lose (0.09) from holding Arctic Star Exploration or give up 9.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kodiak Copper Corp vs. Arctic Star Exploration
Performance |
| Timeline |
| Kodiak Copper Corp |
| Arctic Star Exploration |
Kodiak Copper and Arctic Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kodiak Copper and Arctic Star
The main advantage of trading using opposite Kodiak Copper and Arctic Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kodiak Copper position performs unexpectedly, Arctic Star 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 Arctic Star will offset losses from the drop in Arctic Star's long position.| Kodiak Copper vs. Silver Tiger Metals | Kodiak Copper vs. P2 Gold | Kodiak Copper vs. Integra Resources Corp | Kodiak Copper vs. SilverCrest Metals |
| Arctic Star vs. American Sierra Gold | Arctic Star vs. Aurania Resources | Arctic Star vs. Alien Metals | Arctic Star vs. Gold79 Mines |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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