Correlation Between Karora Resources and Cassiar Gold

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Can any of the company-specific risk be diversified away by investing in both Karora Resources and Cassiar 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 Karora Resources and Cassiar Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Karora Resources and Cassiar Gold Corp, you can compare the effects of market volatilities on Karora Resources and Cassiar 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 Karora Resources with a short position of Cassiar Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Karora Resources and Cassiar Gold.

Diversification Opportunities for Karora Resources and Cassiar Gold

KaroraCassiarDiversified AwayKaroraCassiarDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Karora and Cassiar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Karora Resources and Cassiar Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cassiar Gold Corp and Karora Resources 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 Karora Resources are associated (or correlated) with Cassiar Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cassiar Gold Corp has no effect on the direction of Karora Resources i.e., Karora Resources and Cassiar Gold go up and down completely randomly.

Pair Corralation between Karora Resources and Cassiar Gold

If you would invest (100.00) in Karora Resources on November 26, 2024 and sell it today you would earn a total of  100.00  from holding Karora Resources or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Karora Resources  vs.  Cassiar Gold Corp

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -15-10-505
JavaScript chart by amCharts 3.21.15KRRGF CGLCF
       Timeline  
Karora Resources 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Karora Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Karora Resources is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
Cassiar Gold Corp 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Cassiar Gold Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Cassiar Gold may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.120.130.140.150.160.170.180.19

Karora Resources and Cassiar Gold Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15 0.0050.0100.015
JavaScript chart by amCharts 3.21.15KRRGF CGLCF
       Returns  

Pair Trading with Karora Resources and Cassiar Gold

The main advantage of trading using opposite Karora Resources and Cassiar Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Karora Resources position performs unexpectedly, Cassiar 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 Cassiar Gold will offset losses from the drop in Cassiar Gold's long position.
The idea behind Karora Resources and Cassiar Gold Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.

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