Correlation Between Kore Mining and Grande Portage
Can any of the company-specific risk be diversified away by investing in both Kore Mining and Grande Portage 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 Grande Portage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kore Mining and Grande Portage Resources, you can compare the effects of market volatilities on Kore Mining and Grande Portage 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 Grande Portage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kore Mining and Grande Portage.
Diversification Opportunities for Kore Mining and Grande Portage
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kore and Grande is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Kore Mining and Grande Portage Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grande Portage 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 Grande Portage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grande Portage Resources has no effect on the direction of Kore Mining i.e., Kore Mining and Grande Portage go up and down completely randomly.
Pair Corralation between Kore Mining and Grande Portage
Assuming the 90 days trading horizon Kore Mining is expected to generate 1.81 times more return on investment than Grande Portage. However, Kore Mining is 1.81 times more volatile than Grande Portage Resources. It trades about 0.06 of its potential returns per unit of risk. Grande Portage Resources is currently generating about 0.04 per unit of risk. If you would invest 3.00 in Kore Mining on November 19, 2024 and sell it today you would earn a total of 0.50 from holding Kore Mining or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kore Mining vs. Grande Portage Resources
Performance |
| Timeline |
| Kore Mining |
| Grande Portage Resources |
Kore Mining and Grande Portage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kore Mining and Grande Portage
The main advantage of trading using opposite Kore Mining and Grande Portage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kore Mining position performs unexpectedly, Grande Portage 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 Grande Portage will offset losses from the drop in Grande Portage's long position.| Kore Mining vs. Outcrop Gold Corp | Kore Mining vs. Grande Portage Resources | Kore Mining vs. Lumina Gold Corp | Kore Mining vs. American Creek Resources |
| Grande Portage vs. Galantas Gold Corp | Grande Portage vs. Strikepoint Gold | Grande Portage vs. Kore Mining | Grande Portage vs. Outcrop 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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