Correlation Between Kinross Gold and Hycroft Mining
Can any of the company-specific risk be diversified away by investing in both Kinross Gold and Hycroft 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 Kinross Gold and Hycroft Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinross Gold and Hycroft Mining Holding, you can compare the effects of market volatilities on Kinross Gold and Hycroft 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 Kinross Gold with a short position of Hycroft Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinross Gold and Hycroft Mining.
Diversification Opportunities for Kinross Gold and Hycroft Mining
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kinross and Hycroft is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Kinross Gold and Hycroft Mining Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hycroft Mining Holding 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 Hycroft Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hycroft Mining Holding has no effect on the direction of Kinross Gold i.e., Kinross Gold and Hycroft Mining go up and down completely randomly.
Pair Corralation between Kinross Gold and Hycroft Mining
Considering the 90-day investment horizon Kinross Gold is expected to generate 0.43 times more return on investment than Hycroft Mining. However, Kinross Gold is 2.32 times less risky than Hycroft Mining. It trades about 0.09 of its potential returns per unit of risk. Hycroft Mining Holding is currently generating about 0.0 per unit of risk. If you would invest 408.00 in Kinross Gold on August 28, 2024 and sell it today you would earn a total of 573.00 from holding Kinross Gold or generate 140.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinross Gold vs. Hycroft Mining Holding
Performance |
| Timeline |
| Kinross Gold |
| Hycroft Mining Holding |
Kinross Gold and Hycroft Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinross Gold and Hycroft Mining
The main advantage of trading using opposite Kinross Gold and Hycroft Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinross Gold position performs unexpectedly, Hycroft 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 Hycroft Mining will offset losses from the drop in Hycroft Mining's long position.| Kinross Gold vs. Pan American Silver | Kinross Gold vs. Newmont Goldcorp Corp | Kinross Gold vs. Wheaton Precious Metals | Kinross Gold vs. Franco Nevada |
| Hycroft Mining vs. Agnico Eagle Mines | Hycroft Mining vs. B2Gold Corp | Hycroft Mining vs. Pan American Silver | Hycroft Mining vs. Gold Fields Ltd |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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