Correlation Between Kore Mining and Kootenay Silver
Can any of the company-specific risk be diversified away by investing in both Kore Mining and Kootenay Silver 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 Kootenay Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kore Mining and Kootenay Silver, you can compare the effects of market volatilities on Kore Mining and Kootenay Silver 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 Kootenay Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kore Mining and Kootenay Silver.
Diversification Opportunities for Kore Mining and Kootenay Silver
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kore and Kootenay is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kore Mining and Kootenay Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kootenay Silver 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 Kootenay Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kootenay Silver has no effect on the direction of Kore Mining i.e., Kore Mining and Kootenay Silver go up and down completely randomly.
Pair Corralation between Kore Mining and Kootenay Silver
Assuming the 90 days trading horizon Kore Mining is expected to generate 1.3 times more return on investment than Kootenay Silver. However, Kore Mining is 1.3 times more volatile than Kootenay Silver. It trades about -0.21 of its potential returns per unit of risk. Kootenay Silver is currently generating about -0.31 per unit of risk. If you would invest 4.00 in Kore Mining on August 25, 2024 and sell it today you would lose (1.00) from holding Kore Mining or give up 25.0% 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. Kootenay Silver
Performance |
| Timeline |
| Kore Mining |
| Kootenay Silver |
Kore Mining and Kootenay Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kore Mining and Kootenay Silver
The main advantage of trading using opposite Kore Mining and Kootenay Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kore Mining position performs unexpectedly, Kootenay Silver 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 Kootenay Silver will offset losses from the drop in Kootenay Silver's 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 |
| Kootenay Silver vs. First Majestic Silver | Kootenay Silver vs. Ivanhoe Energy | Kootenay Silver vs. Orezone Gold Corp | Kootenay Silver 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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