Correlation Between K92 Mining and Aris Gold
Can any of the company-specific risk be diversified away by investing in both K92 Mining and Aris 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 K92 Mining and Aris Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between K92 Mining and Aris Gold Corp, you can compare the effects of market volatilities on K92 Mining and Aris 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 K92 Mining with a short position of Aris Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of K92 Mining and Aris Gold.
Diversification Opportunities for K92 Mining and Aris Gold
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between K92 and Aris is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding K92 Mining and Aris Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aris Gold Corp and K92 Mining 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 K92 Mining are associated (or correlated) with Aris Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aris Gold Corp has no effect on the direction of K92 Mining i.e., K92 Mining and Aris Gold go up and down completely randomly.
Pair Corralation between K92 Mining and Aris Gold
Assuming the 90 days trading horizon K92 Mining is expected to generate 1.64 times more return on investment than Aris Gold. However, K92 Mining is 1.64 times more volatile than Aris Gold Corp. It trades about 0.1 of its potential returns per unit of risk. Aris Gold Corp is currently generating about 0.06 per unit of risk. If you would invest 898.00 in K92 Mining on November 3, 2024 and sell it today you would earn a total of 67.00 from holding K92 Mining or generate 7.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
K92 Mining vs. Aris Gold Corp
Performance |
| Timeline |
| K92 Mining |
| Aris Gold Corp |
K92 Mining and Aris Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with K92 Mining and Aris Gold
The main advantage of trading using opposite K92 Mining and Aris Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if K92 Mining position performs unexpectedly, Aris 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 Aris Gold will offset losses from the drop in Aris Gold's long position.| K92 Mining vs. Calibre Mining Corp | K92 Mining vs. Wesdome Gold Mines | K92 Mining vs. Equinox Gold Corp | K92 Mining vs. Orla Mining |
| Aris Gold vs. Calibre Mining Corp | Aris Gold vs. K92 Mining | Aris Gold vs. Equinox Gold Corp | Aris Gold vs. New Found 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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