Correlation Between Kore Mining and IAMGold
Can any of the company-specific risk be diversified away by investing in both Kore Mining and IAMGold 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 IAMGold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kore Mining and IAMGold, you can compare the effects of market volatilities on Kore Mining and IAMGold 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 IAMGold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kore Mining and IAMGold.
Diversification Opportunities for Kore Mining and IAMGold
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kore and IAMGold is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Kore Mining and IAMGold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IAMGold 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 IAMGold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IAMGold has no effect on the direction of Kore Mining i.e., Kore Mining and IAMGold go up and down completely randomly.
Pair Corralation between Kore Mining and IAMGold
Assuming the 90 days trading horizon Kore Mining is expected to generate 2.88 times more return on investment than IAMGold. However, Kore Mining is 2.88 times more volatile than IAMGold. It trades about 0.03 of its potential returns per unit of risk. IAMGold is currently generating about 0.08 per unit of risk. If you would invest 5.00 in Kore Mining on September 12, 2024 and sell it today you would lose (2.00) from holding Kore Mining or give up 40.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kore Mining vs. IAMGold
Performance |
| Timeline |
| Kore Mining |
| IAMGold |
Kore Mining and IAMGold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kore Mining and IAMGold
The main advantage of trading using opposite Kore Mining and IAMGold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kore Mining position performs unexpectedly, IAMGold 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 IAMGold will offset losses from the drop in IAMGold's long position.| Kore Mining vs. Ressources Minieres Radisson | Kore Mining vs. Galantas Gold Corp | Kore Mining vs. Red Pine Exploration | Kore Mining vs. Strikepoint Gold |
| IAMGold vs. Ressources Minieres Radisson | IAMGold vs. Galantas Gold Corp | IAMGold vs. Red Pine Exploration | IAMGold vs. Kore Mining |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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