Correlation Between K92 Mining and Robex Resources
Can any of the company-specific risk be diversified away by investing in both K92 Mining and Robex 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 Robex 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 Robex Resources, you can compare the effects of market volatilities on K92 Mining and Robex 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 Robex Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of K92 Mining and Robex Resources.
Diversification Opportunities for K92 Mining and Robex Resources
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between K92 and Robex is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding K92 Mining and Robex Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robex 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 Robex Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robex Resources has no effect on the direction of K92 Mining i.e., K92 Mining and Robex Resources go up and down completely randomly.
Pair Corralation between K92 Mining and Robex Resources
Assuming the 90 days horizon K92 Mining is expected to generate 1.31 times more return on investment than Robex Resources. However, K92 Mining is 1.31 times more volatile than Robex Resources. It trades about 0.11 of its potential returns per unit of risk. Robex Resources is currently generating about -0.13 per unit of risk. If you would invest 526.00 in K92 Mining on August 28, 2024 and sell it today you would earn a total of 119.00 from holding K92 Mining or generate 22.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
K92 Mining vs. Robex Resources
Performance |
| Timeline |
| K92 Mining |
| Robex Resources |
K92 Mining and Robex Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with K92 Mining and Robex Resources
The main advantage of trading using opposite K92 Mining and Robex Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if K92 Mining position performs unexpectedly, Robex 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 Robex Resources will offset losses from the drop in Robex Resources' long position.| K92 Mining vs. Ascendant Resources | K92 Mining vs. Cantex Mine Development | K92 Mining vs. Amarc Resources | K92 Mining vs. Sterling Metals Corp |
| Robex Resources vs. Ascendant Resources | Robex Resources vs. Cantex Mine Development | Robex Resources vs. Amarc Resources | Robex Resources vs. Sterling Metals 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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