Correlation Between Kore Mining and Lion One
Can any of the company-specific risk be diversified away by investing in both Kore Mining and Lion One 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 Lion One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kore Mining and Lion One Metals, you can compare the effects of market volatilities on Kore Mining and Lion One 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 Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kore Mining and Lion One.
Diversification Opportunities for Kore Mining and Lion One
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kore and Lion is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Kore Mining and Lion One Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion One Metals 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 Lion One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion One Metals has no effect on the direction of Kore Mining i.e., Kore Mining and Lion One go up and down completely randomly.
Pair Corralation between Kore Mining and Lion One
Assuming the 90 days trading horizon Kore Mining is expected to generate 3.31 times more return on investment than Lion One. However, Kore Mining is 3.31 times more volatile than Lion One Metals. It trades about -0.03 of its potential returns per unit of risk. Lion One Metals is currently generating about -0.1 per unit of risk. If you would invest 4.00 in Kore Mining on September 13, 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. Lion One Metals
Performance |
| Timeline |
| Kore Mining |
| Lion One Metals |
Kore Mining and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kore Mining and Lion One
The main advantage of trading using opposite Kore Mining and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kore Mining position performs unexpectedly, Lion One 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 Lion One will offset losses from the drop in Lion One's 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 |
| Lion One vs. Arizona Sonoran Copper | Lion One vs. Marimaca Copper Corp | Lion One vs. World Copper | Lion One vs. QC Copper and |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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