Correlation Between K92 Mining and Karora Resources
Can any of the company-specific risk be diversified away by investing in both K92 Mining and Karora 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 K92 Mining and Karora Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between K92 Mining and Karora Resources, you can compare the effects of market volatilities on K92 Mining and Karora 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 K92 Mining with a short position of Karora Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of K92 Mining and Karora Resources.
Diversification Opportunities for K92 Mining and Karora Resources
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between K92 and Karora is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding K92 Mining and Karora Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karora Resources 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 Karora Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Karora Resources has no effect on the direction of K92 Mining i.e., K92 Mining and Karora Resources go up and down completely randomly.
Pair Corralation between K92 Mining and Karora Resources
Assuming the 90 days horizon K92 Mining is expected to generate 1.49 times less return on investment than Karora Resources. In addition to that, K92 Mining is 1.11 times more volatile than Karora Resources. It trades about 0.03 of its total potential returns per unit of risk. Karora Resources is currently generating about 0.05 per unit of volatility. If you would invest 321.00 in Karora Resources on November 2, 2024 and sell it today you would earn a total of 162.00 from holding Karora Resources or generate 50.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 75.1% |
| Values | Daily Returns |
K92 Mining vs. Karora Resources
Performance |
| Timeline |
| K92 Mining |
| Karora Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
K92 Mining and Karora Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with K92 Mining and Karora Resources
The main advantage of trading using opposite K92 Mining and Karora Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if K92 Mining position performs unexpectedly, Karora 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 Karora Resources will offset losses from the drop in Karora Resources' long position.| K92 Mining vs. I 80 Gold Corp | K92 Mining vs. Equinox Gold Corp | K92 Mining vs. Contango ORE | K92 Mining vs. Orla Mining |
| Karora Resources vs. K92 Mining | Karora Resources vs. I 80 Gold Corp | Karora Resources vs. Wesdome Gold Mines | Karora Resources vs. GGX 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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