Correlation Between Kinross Gold and Conquest Resources
Can any of the company-specific risk be diversified away by investing in both Kinross Gold and Conquest 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 Kinross Gold and Conquest Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinross Gold and Conquest Resources Limited, you can compare the effects of market volatilities on Kinross Gold and Conquest 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 Kinross Gold with a short position of Conquest Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinross Gold and Conquest Resources.
Diversification Opportunities for Kinross Gold and Conquest Resources
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kinross and Conquest is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Kinross Gold and Conquest Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conquest Resources and Kinross 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 Kinross Gold are associated (or correlated) with Conquest Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conquest Resources has no effect on the direction of Kinross Gold i.e., Kinross Gold and Conquest Resources go up and down completely randomly.
Pair Corralation between Kinross Gold and Conquest Resources
Considering the 90-day investment horizon Kinross Gold is expected to generate 0.7 times more return on investment than Conquest Resources. However, Kinross Gold is 1.44 times less risky than Conquest Resources. It trades about 0.13 of its potential returns per unit of risk. Conquest Resources Limited is currently generating about -0.18 per unit of risk. If you would invest 950.00 in Kinross Gold on September 13, 2024 and sell it today you would earn a total of 65.00 from holding Kinross Gold or generate 6.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Kinross Gold vs. Conquest Resources Limited
Performance |
| Timeline |
| Kinross Gold |
| Conquest Resources |
Kinross Gold and Conquest Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinross Gold and Conquest Resources
The main advantage of trading using opposite Kinross Gold and Conquest Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinross Gold position performs unexpectedly, Conquest 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 Conquest Resources will offset losses from the drop in Conquest Resources' long position.| Kinross Gold vs. Fortitude Gold Corp | Kinross Gold vs. New Gold | Kinross Gold vs. Galiano Gold | Kinross Gold vs. GoldMining |
| Conquest Resources vs. Advantage Solutions | Conquest Resources vs. Atlas Corp | Conquest Resources vs. PureCycle Technologies | Conquest Resources vs. WM Technology |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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