Correlation Between Kodiak Copper and Viscount Mining
Can any of the company-specific risk be diversified away by investing in both Kodiak Copper and Viscount Mining 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 Viscount Mining 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 Viscount Mining Corp, you can compare the effects of market volatilities on Kodiak Copper and Viscount Mining 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 Viscount Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kodiak Copper and Viscount Mining.
Diversification Opportunities for Kodiak Copper and Viscount Mining
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kodiak and Viscount is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Kodiak Copper Corp and Viscount Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viscount Mining Corp 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 Viscount Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viscount Mining Corp has no effect on the direction of Kodiak Copper i.e., Kodiak Copper and Viscount Mining go up and down completely randomly.
Pair Corralation between Kodiak Copper and Viscount Mining
Assuming the 90 days horizon Kodiak Copper Corp is expected to under-perform the Viscount Mining. But the otc stock apears to be less risky and, when comparing its historical volatility, Kodiak Copper Corp is 1.04 times less risky than Viscount Mining. The otc stock trades about -0.25 of its potential returns per unit of risk. The Viscount Mining Corp is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 19.00 in Viscount Mining Corp on September 1, 2024 and sell it today you would lose (2.00) from holding Viscount Mining Corp or give up 10.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kodiak Copper Corp vs. Viscount Mining Corp
Performance |
| Timeline |
| Kodiak Copper Corp |
| Viscount Mining Corp |
Kodiak Copper and Viscount Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kodiak Copper and Viscount Mining
The main advantage of trading using opposite Kodiak Copper and Viscount Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kodiak Copper position performs unexpectedly, Viscount Mining 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 Viscount Mining will offset losses from the drop in Viscount Mining's long position.| Kodiak Copper vs. Defiance Silver Corp | Kodiak Copper vs. HUMANA INC | Kodiak Copper vs. SCOR PK | Kodiak Copper vs. Aquagold International |
| Viscount Mining vs. Defiance Silver Corp | Viscount Mining vs. HUMANA INC | Viscount Mining vs. SCOR PK | Viscount Mining 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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