Correlation Between Klondike Gold and Klondike Silver
Can any of the company-specific risk be diversified away by investing in both Klondike Gold and Klondike Silver 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 Klondike Gold and Klondike Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Klondike Gold Corp and Klondike Silver Corp, you can compare the effects of market volatilities on Klondike Gold and Klondike Silver 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 Klondike Gold with a short position of Klondike Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Klondike Gold and Klondike Silver.
Diversification Opportunities for Klondike Gold and Klondike Silver
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Klondike and Klondike is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Klondike Gold Corp and Klondike Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klondike Silver Corp and Klondike Gold 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 Klondike Gold Corp are associated (or correlated) with Klondike Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klondike Silver Corp has no effect on the direction of Klondike Gold i.e., Klondike Gold and Klondike Silver go up and down completely randomly.
Pair Corralation between Klondike Gold and Klondike Silver
Given the investment horizon of 90 days Klondike Gold is expected to generate 3.03 times less return on investment than Klondike Silver. But when comparing it to its historical volatility, Klondike Gold Corp is 1.58 times less risky than Klondike Silver. It trades about 0.03 of its potential returns per unit of risk. Klondike Silver Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2.50 in Klondike Silver Corp on August 25, 2024 and sell it today you would lose (0.50) from holding Klondike Silver Corp or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Klondike Gold Corp vs. Klondike Silver Corp
Performance |
| Timeline |
| Klondike Gold Corp |
| Klondike Silver Corp |
Klondike Gold and Klondike Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Klondike Gold and Klondike Silver
The main advantage of trading using opposite Klondike Gold and Klondike Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Klondike Gold position performs unexpectedly, Klondike Silver 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 Klondike Silver will offset losses from the drop in Klondike Silver's long position.| Klondike Gold vs. Golden Goliath Resources | Klondike Gold vs. Minera Alamos | Klondike Gold vs. Klondike Silver Corp | Klondike Gold vs. Metallic Minerals Corp |
| Klondike Silver vs. Silver Grail Resources | Klondike Silver vs. Monarca Minerals | Klondike Silver vs. Gold79 Mines | Klondike Silver vs. Klondike Gold 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |