Correlation Between Kinross Gold and Idaho Strategic
Can any of the company-specific risk be diversified away by investing in both Kinross Gold and Idaho Strategic 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 Idaho Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinross Gold and Idaho Strategic Resources, you can compare the effects of market volatilities on Kinross Gold and Idaho Strategic 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 Idaho Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinross Gold and Idaho Strategic.
Diversification Opportunities for Kinross Gold and Idaho Strategic
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kinross and Idaho is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Kinross Gold and Idaho Strategic Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Idaho Strategic 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 Idaho Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Idaho Strategic Resources has no effect on the direction of Kinross Gold i.e., Kinross Gold and Idaho Strategic go up and down completely randomly.
Pair Corralation between Kinross Gold and Idaho Strategic
Considering the 90-day investment horizon Kinross Gold is expected to generate 1.02 times more return on investment than Idaho Strategic. However, Kinross Gold is 1.02 times more volatile than Idaho Strategic Resources. It trades about 0.25 of its potential returns per unit of risk. Idaho Strategic Resources is currently generating about 0.2 per unit of risk. If you would invest 907.00 in Kinross Gold on October 20, 2024 and sell it today you would earn a total of 124.00 from holding Kinross Gold or generate 13.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Kinross Gold vs. Idaho Strategic Resources
Performance |
| Timeline |
| Kinross Gold |
| Idaho Strategic Resources |
Kinross Gold and Idaho Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinross Gold and Idaho Strategic
The main advantage of trading using opposite Kinross Gold and Idaho Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinross Gold position performs unexpectedly, Idaho Strategic 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 Idaho Strategic will offset losses from the drop in Idaho Strategic'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 |
| Idaho Strategic vs. IperionX Limited American | Idaho Strategic vs. Vail Resorts | Idaho Strategic vs. Marcus | Idaho Strategic vs. Surrozen |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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