Correlation Between Kodiak Copper and Silver Tiger
Can any of the company-specific risk be diversified away by investing in both Kodiak Copper and Silver Tiger 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 Silver Tiger 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 Silver Tiger Metals, you can compare the effects of market volatilities on Kodiak Copper and Silver Tiger 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 Silver Tiger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kodiak Copper and Silver Tiger.
Diversification Opportunities for Kodiak Copper and Silver Tiger
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kodiak and Silver is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Kodiak Copper Corp and Silver Tiger Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver Tiger Metals 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 Silver Tiger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver Tiger Metals has no effect on the direction of Kodiak Copper i.e., Kodiak Copper and Silver Tiger go up and down completely randomly.
Pair Corralation between Kodiak Copper and Silver Tiger
Assuming the 90 days horizon Kodiak Copper Corp is expected to under-perform the Silver Tiger. But the otc stock apears to be less risky and, when comparing its historical volatility, Kodiak Copper Corp is 1.3 times less risky than Silver Tiger. The otc stock trades about -0.02 of its potential returns per unit of risk. The Silver Tiger Metals is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 17.00 in Silver Tiger Metals on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Silver Tiger Metals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kodiak Copper Corp vs. Silver Tiger Metals
Performance |
| Timeline |
| Kodiak Copper Corp |
| Silver Tiger Metals |
Kodiak Copper and Silver Tiger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kodiak Copper and Silver Tiger
The main advantage of trading using opposite Kodiak Copper and Silver Tiger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kodiak Copper position performs unexpectedly, Silver Tiger 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 Silver Tiger will offset losses from the drop in Silver Tiger'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 |
| Silver Tiger vs. Defiance Silver Corp | Silver Tiger vs. HUMANA INC | Silver Tiger vs. SCOR PK | Silver Tiger vs. Aquagold International |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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