Correlation Between Kinross Gold and Regis Resources
Can any of the company-specific risk be diversified away by investing in both Kinross Gold and Regis 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 Regis 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 Regis Resources, you can compare the effects of market volatilities on Kinross Gold and Regis 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 Regis Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinross Gold and Regis Resources.
Diversification Opportunities for Kinross Gold and Regis Resources
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kinross and Regis is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Kinross Gold and Regis Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regis 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 Regis Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regis Resources has no effect on the direction of Kinross Gold i.e., Kinross Gold and Regis Resources go up and down completely randomly.
Pair Corralation between Kinross Gold and Regis Resources
Considering the 90-day investment horizon Kinross Gold is expected to under-perform the Regis Resources. In addition to that, Kinross Gold is 1.4 times more volatile than Regis Resources. It trades about -0.09 of its total potential returns per unit of risk. Regis Resources is currently generating about -0.1 per unit of volatility. If you would invest 181.00 in Regis Resources on August 30, 2024 and sell it today you would lose (11.00) from holding Regis Resources or give up 6.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinross Gold vs. Regis Resources
Performance |
| Timeline |
| Kinross Gold |
| Regis Resources |
Kinross Gold and Regis Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinross Gold and Regis Resources
The main advantage of trading using opposite Kinross Gold and Regis Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinross Gold position performs unexpectedly, Regis 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 Regis Resources will offset losses from the drop in Regis Resources' long position.| Kinross Gold vs. Franco Nevada | Kinross Gold vs. Osisko Gold Ro | Kinross Gold vs. Sandstorm Gold Ltd | Kinross Gold vs. Royal Gold |
| Regis Resources vs. Vertiv Holdings Co | Regis Resources vs. Nasdaq Inc | Regis Resources vs. McDonalds | Regis Resources vs. Walmart |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |