Correlation Between Kiplin Metals and Plato Gold
Can any of the company-specific risk be diversified away by investing in both Kiplin Metals and Plato Gold 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 Kiplin Metals and Plato Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kiplin Metals and Plato Gold Corp, you can compare the effects of market volatilities on Kiplin Metals and Plato Gold 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 Kiplin Metals with a short position of Plato Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kiplin Metals and Plato Gold.
Diversification Opportunities for Kiplin Metals and Plato Gold
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kiplin and Plato is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Kiplin Metals and Plato Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plato Gold Corp and Kiplin Metals 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 Kiplin Metals are associated (or correlated) with Plato Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plato Gold Corp has no effect on the direction of Kiplin Metals i.e., Kiplin Metals and Plato Gold go up and down completely randomly.
Pair Corralation between Kiplin Metals and Plato Gold
Assuming the 90 days horizon Kiplin Metals is expected to generate 3.94 times more return on investment than Plato Gold. However, Kiplin Metals is 3.94 times more volatile than Plato Gold Corp. It trades about 0.11 of its potential returns per unit of risk. Plato Gold Corp is currently generating about 0.09 per unit of risk. If you would invest 87.00 in Kiplin Metals on August 25, 2024 and sell it today you would lose (63.00) from holding Kiplin Metals or give up 72.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kiplin Metals vs. Plato Gold Corp
Performance |
| Timeline |
| Kiplin Metals |
| Plato Gold Corp |
Kiplin Metals and Plato Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kiplin Metals and Plato Gold
The main advantage of trading using opposite Kiplin Metals and Plato Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kiplin Metals position performs unexpectedly, Plato Gold 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 Plato Gold will offset losses from the drop in Plato Gold's long position.| Kiplin Metals vs. Plato Gold Corp | Kiplin Metals vs. Rochester Resources | Kiplin Metals vs. Forstrong Global Income | Kiplin Metals vs. Terreno Resources Corp |
| Plato Gold vs. Q Gold Resources | Plato Gold vs. MAS Gold Corp | Plato Gold vs. ExGen Resources | Plato Gold vs. Carlin Gold |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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