Correlation Between KORE Mining and Nasdaq
Can any of the company-specific risk be diversified away by investing in both KORE Mining and Nasdaq 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 Nasdaq into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KORE Mining and Nasdaq Inc, you can compare the effects of market volatilities on KORE Mining and Nasdaq 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 Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of KORE Mining and Nasdaq.
Diversification Opportunities for KORE Mining and Nasdaq
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KORE and Nasdaq is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding KORE Mining and Nasdaq Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq Inc 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 Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq Inc has no effect on the direction of KORE Mining i.e., KORE Mining and Nasdaq go up and down completely randomly.
Pair Corralation between KORE Mining and Nasdaq
Assuming the 90 days horizon KORE Mining is expected to generate 8.83 times more return on investment than Nasdaq. However, KORE Mining is 8.83 times more volatile than Nasdaq Inc. It trades about 0.21 of its potential returns per unit of risk. Nasdaq Inc is currently generating about -0.08 per unit of risk. If you would invest 2.00 in KORE Mining on November 27, 2024 and sell it today you would earn a total of 0.80 from holding KORE Mining or generate 40.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KORE Mining vs. Nasdaq Inc
Performance |
| Timeline |
| KORE Mining |
| Nasdaq Inc |
KORE Mining and Nasdaq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KORE Mining and Nasdaq
The main advantage of trading using opposite KORE Mining and Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KORE Mining position performs unexpectedly, Nasdaq 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 Nasdaq will offset losses from the drop in Nasdaq's long position.| KORE Mining vs. Falcon Gold Corp | KORE Mining vs. Altamira Gold Corp | KORE Mining vs. Precipitate Gold Corp | KORE Mining vs. Fosterville South Exploration |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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