Correlation Between Kinross Gold and Sixty North
Can any of the company-specific risk be diversified away by investing in both Kinross Gold and Sixty North 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 Sixty North into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinross Gold and Sixty North Gold, you can compare the effects of market volatilities on Kinross Gold and Sixty North 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 Sixty North. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinross Gold and Sixty North.
Diversification Opportunities for Kinross Gold and Sixty North
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kinross and Sixty is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Kinross Gold and Sixty North Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixty North Gold 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 Sixty North. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixty North Gold has no effect on the direction of Kinross Gold i.e., Kinross Gold and Sixty North go up and down completely randomly.
Pair Corralation between Kinross Gold and Sixty North
Considering the 90-day investment horizon Kinross Gold is expected to generate 7.43 times less return on investment than Sixty North. But when comparing it to its historical volatility, Kinross Gold is 9.01 times less risky than Sixty North. It trades about 0.1 of its potential returns per unit of risk. Sixty North Gold is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 8.50 in Sixty North Gold on September 3, 2024 and sell it today you would lose (1.78) from holding Sixty North Gold or give up 20.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.68% |
| Values | Daily Returns |
Kinross Gold vs. Sixty North Gold
Performance |
| Timeline |
| Kinross Gold |
| Sixty North Gold |
Kinross Gold and Sixty North Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinross Gold and Sixty North
The main advantage of trading using opposite Kinross Gold and Sixty North positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinross Gold position performs unexpectedly, Sixty North 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 Sixty North will offset losses from the drop in Sixty North's long position.| Kinross Gold vs. Agnico Eagle Mines | Kinross Gold vs. Gold Fields Ltd | Kinross Gold vs. Franco Nevada | Kinross Gold vs. Sandstorm Gold Ltd |
| Sixty North vs. Puma Exploration | Sixty North vs. Red Pine Exploration | Sixty North vs. Grande Portage Resources | Sixty North vs. Altamira 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |