Correlation Between Kesselrun Resources and Benton Resources
Can any of the company-specific risk be diversified away by investing in both Kesselrun Resources and Benton Resources 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 Kesselrun Resources and Benton Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kesselrun Resources and Benton Resources, you can compare the effects of market volatilities on Kesselrun Resources and Benton Resources 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 Kesselrun Resources with a short position of Benton Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kesselrun Resources and Benton Resources.
Diversification Opportunities for Kesselrun Resources and Benton Resources
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kesselrun and Benton is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Kesselrun Resources and Benton Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benton Resources and Kesselrun Resources 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 Kesselrun Resources are associated (or correlated) with Benton Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benton Resources has no effect on the direction of Kesselrun Resources i.e., Kesselrun Resources and Benton Resources go up and down completely randomly.
Pair Corralation between Kesselrun Resources and Benton Resources
Assuming the 90 days horizon Kesselrun Resources is expected to generate 1.3 times more return on investment than Benton Resources. However, Kesselrun Resources is 1.3 times more volatile than Benton Resources. It trades about 0.02 of its potential returns per unit of risk. Benton Resources is currently generating about 0.03 per unit of risk. If you would invest 5.00 in Kesselrun Resources on November 28, 2024 and sell it today you would lose (1.00) from holding Kesselrun Resources or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kesselrun Resources vs. Benton Resources
Performance |
| Timeline |
| Kesselrun Resources |
| Benton Resources |
Kesselrun Resources and Benton Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kesselrun Resources and Benton Resources
The main advantage of trading using opposite Kesselrun Resources and Benton Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kesselrun Resources position performs unexpectedly, Benton Resources 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 Benton Resources will offset losses from the drop in Benton Resources' long position.| Kesselrun Resources vs. Magnum Goldcorp | Kesselrun Resources vs. Lupaka Gold Corp | Kesselrun Resources vs. Black Widow Resources |
| Benton Resources vs. Avrupa Minerals | Benton Resources vs. Maritime Resources Corp | Benton Resources vs. Chibougamau Independent Mines | Benton Resources vs. Angkor Resources 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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