Correlation Between K92 Mining and OceanaGold
Can any of the company-specific risk be diversified away by investing in both K92 Mining and OceanaGold 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 OceanaGold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between K92 Mining and OceanaGold, you can compare the effects of market volatilities on K92 Mining and OceanaGold 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 OceanaGold. Check out your portfolio center. Please also check ongoing floating volatility patterns of K92 Mining and OceanaGold.
Diversification Opportunities for K92 Mining and OceanaGold
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between K92 and OceanaGold is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding K92 Mining and OceanaGold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OceanaGold 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 OceanaGold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OceanaGold has no effect on the direction of K92 Mining i.e., K92 Mining and OceanaGold go up and down completely randomly.
Pair Corralation between K92 Mining and OceanaGold
Assuming the 90 days trading horizon K92 Mining is expected to generate 70.3 times less return on investment than OceanaGold. But when comparing it to its historical volatility, K92 Mining is 1.11 times less risky than OceanaGold. It trades about 0.0 of its potential returns per unit of risk. OceanaGold is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 411.00 in OceanaGold on August 25, 2024 and sell it today you would earn a total of 33.00 from holding OceanaGold or generate 8.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
K92 Mining vs. OceanaGold
Performance |
| Timeline |
| K92 Mining |
| OceanaGold |
K92 Mining and OceanaGold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with K92 Mining and OceanaGold
The main advantage of trading using opposite K92 Mining and OceanaGold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if K92 Mining position performs unexpectedly, OceanaGold 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 OceanaGold will offset losses from the drop in OceanaGold'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 |
| OceanaGold vs. Torex Gold Resources | OceanaGold vs. Wesdome Gold Mines | OceanaGold vs. Centerra Gold | OceanaGold vs. New 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |