Correlation Between KORE Mining and Montage Gold
Can any of the company-specific risk be diversified away by investing in both KORE Mining and Montage 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 Montage 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 Montage Gold Corp, you can compare the effects of market volatilities on KORE Mining and Montage 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 Montage Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of KORE Mining and Montage Gold.
Diversification Opportunities for KORE Mining and Montage Gold
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KORE and Montage is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding KORE Mining and Montage Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Montage Gold Corp 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 Montage Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Montage Gold Corp has no effect on the direction of KORE Mining i.e., KORE Mining and Montage Gold go up and down completely randomly.
Pair Corralation between KORE Mining and Montage Gold
Assuming the 90 days horizon KORE Mining is expected to under-perform the Montage Gold. In addition to that, KORE Mining is 3.83 times more volatile than Montage Gold Corp. It trades about -0.08 of its total potential returns per unit of risk. Montage Gold Corp is currently generating about -0.24 per unit of volatility. If you would invest 182.00 in Montage Gold Corp on September 1, 2024 and sell it today you would lose (25.00) from holding Montage Gold Corp or give up 13.74% 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. Montage Gold Corp
Performance |
| Timeline |
| KORE Mining |
| Montage Gold Corp |
KORE Mining and Montage Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KORE Mining and Montage Gold
The main advantage of trading using opposite KORE Mining and Montage Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KORE Mining position performs unexpectedly, Montage 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 Montage Gold will offset losses from the drop in Montage Gold's long position.| KORE Mining vs. Aurion Resources | KORE Mining vs. Rio2 Limited | KORE Mining vs. Palamina Corp | KORE Mining vs. BTU Metals Corp |
| Montage Gold vs. Aurion Resources | Montage Gold vs. Rio2 Limited | Montage Gold vs. Palamina Corp | Montage Gold vs. BTU Metals 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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