Correlation Between Kore Mining and Bluestone Resources
Can any of the company-specific risk be diversified away by investing in both Kore Mining and Bluestone 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 Kore Mining and Bluestone Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kore Mining and Bluestone Resources, you can compare the effects of market volatilities on Kore Mining and Bluestone 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 Kore Mining with a short position of Bluestone Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kore Mining and Bluestone Resources.
Diversification Opportunities for Kore Mining and Bluestone Resources
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kore and Bluestone is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Kore Mining and Bluestone Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bluestone Resources and Kore 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 Kore Mining are associated (or correlated) with Bluestone Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bluestone Resources has no effect on the direction of Kore Mining i.e., Kore Mining and Bluestone Resources go up and down completely randomly.
Pair Corralation between Kore Mining and Bluestone Resources
Assuming the 90 days trading horizon Kore Mining is expected to under-perform the Bluestone Resources. In addition to that, Kore Mining is 3.49 times more volatile than Bluestone Resources. It trades about -0.06 of its total potential returns per unit of risk. Bluestone Resources is currently generating about -0.07 per unit of volatility. If you would invest 32.00 in Bluestone Resources on August 29, 2024 and sell it today you would lose (1.00) from holding Bluestone Resources or give up 3.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kore Mining vs. Bluestone Resources
Performance |
| Timeline |
| Kore Mining |
| Bluestone Resources |
Kore Mining and Bluestone Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kore Mining and Bluestone Resources
The main advantage of trading using opposite Kore Mining and Bluestone Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kore Mining position performs unexpectedly, Bluestone 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 Bluestone Resources will offset losses from the drop in Bluestone Resources' long position.| Kore Mining vs. Outcrop Gold Corp | Kore Mining vs. Grande Portage Resources | Kore Mining vs. Bluestone Resources | Kore Mining vs. Lumina Gold Corp |
| Bluestone Resources vs. First Majestic Silver | Bluestone Resources vs. Ivanhoe Energy | Bluestone Resources vs. Orezone Gold Corp | Bluestone Resources vs. Faraday Copper 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |