Correlation Between Kore Mining and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Kore Mining and Dow Jones 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 Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kore Mining and Dow Jones Industrial, you can compare the effects of market volatilities on Kore Mining and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kore Mining and Dow Jones.
Diversification Opportunities for Kore Mining and Dow Jones
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kore and Dow is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Kore Mining and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Kore Mining i.e., Kore Mining and Dow Jones go up and down completely randomly.
Pair Corralation between Kore Mining and Dow Jones
Assuming the 90 days trading horizon Kore Mining is expected to generate 16.07 times more return on investment than Dow Jones. However, Kore Mining is 16.07 times more volatile than Dow Jones Industrial. It trades about 0.06 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 2.00 in Kore Mining on August 25, 2024 and sell it today you would earn a total of 1.00 from holding Kore Mining or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Kore Mining vs. Dow Jones Industrial
Performance |
| Timeline |
Kore Mining and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Kore Mining
Pair trading matchups for Kore Mining
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Kore Mining and Dow Jones
The main advantage of trading using opposite Kore Mining and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kore Mining position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Kore Mining vs. First Majestic Silver | Kore Mining vs. Ivanhoe Energy | Kore Mining vs. Orezone Gold Corp | Kore Mining vs. Faraday Copper Corp |
| Dow Jones vs. Vistra Energy Corp | Dow Jones vs. Fluence Energy | Dow Jones vs. Old Republic International | Dow Jones vs. Empresa Distribuidora y |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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