Correlation Between Kodiak Copper and P2 Gold
Can any of the company-specific risk be diversified away by investing in both Kodiak Copper and P2 Gold 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 P2 Gold 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 P2 Gold, you can compare the effects of market volatilities on Kodiak Copper and P2 Gold 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 P2 Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kodiak Copper and P2 Gold.
Diversification Opportunities for Kodiak Copper and P2 Gold
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kodiak and PGLDF is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kodiak Copper Corp and P2 Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on P2 Gold 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 P2 Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of P2 Gold has no effect on the direction of Kodiak Copper i.e., Kodiak Copper and P2 Gold go up and down completely randomly.
Pair Corralation between Kodiak Copper and P2 Gold
Assuming the 90 days horizon Kodiak Copper Corp is expected to under-perform the P2 Gold. But the otc stock apears to be less risky and, when comparing its historical volatility, Kodiak Copper Corp is 1.95 times less risky than P2 Gold. The otc stock trades about -0.03 of its potential returns per unit of risk. The P2 Gold is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 19.00 in P2 Gold on August 30, 2024 and sell it today you would lose (13.90) from holding P2 Gold or give up 73.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kodiak Copper Corp vs. P2 Gold
Performance |
| Timeline |
| Kodiak Copper Corp |
| P2 Gold |
Kodiak Copper and P2 Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kodiak Copper and P2 Gold
The main advantage of trading using opposite Kodiak Copper and P2 Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kodiak Copper position performs unexpectedly, P2 Gold 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 P2 Gold will offset losses from the drop in P2 Gold'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 |
| P2 Gold vs. Max Resource Corp | P2 Gold vs. Western Alaska Minerals | P2 Gold vs. CMC Metals | P2 Gold vs. Summa Silver 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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