Correlation Between Kore Mining and Xtra Gold
Can any of the company-specific risk be diversified away by investing in both Kore Mining and Xtra Gold 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 Xtra Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kore Mining and Xtra Gold Resources Corp, you can compare the effects of market volatilities on Kore Mining and Xtra Gold 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 Xtra Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kore Mining and Xtra Gold.
Diversification Opportunities for Kore Mining and Xtra Gold
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kore and Xtra is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Kore Mining and Xtra Gold Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtra Gold 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 Xtra Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtra Gold Resources has no effect on the direction of Kore Mining i.e., Kore Mining and Xtra Gold go up and down completely randomly.
Pair Corralation between Kore Mining and Xtra Gold
Assuming the 90 days trading horizon Kore Mining is expected to under-perform the Xtra Gold. In addition to that, Kore Mining is 4.27 times more volatile than Xtra Gold Resources Corp. It trades about -0.01 of its total potential returns per unit of risk. Xtra Gold Resources Corp is currently generating about 0.15 per unit of volatility. If you would invest 164.00 in Xtra Gold Resources Corp on September 13, 2024 and sell it today you would earn a total of 26.00 from holding Xtra Gold Resources Corp or generate 15.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kore Mining vs. Xtra Gold Resources Corp
Performance |
| Timeline |
| Kore Mining |
| Xtra Gold Resources |
Kore Mining and Xtra Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kore Mining and Xtra Gold
The main advantage of trading using opposite Kore Mining and Xtra Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kore Mining position performs unexpectedly, Xtra Gold 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 Xtra Gold will offset losses from the drop in Xtra Gold'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 |
| Xtra Gold vs. Loncor Resources | Xtra Gold vs. Century Global Commodities | Xtra Gold vs. Grosvenor Resource Corp | Xtra Gold vs. Quartz Mountain Resources |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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