Correlation Between Klondike Silver and Strikepoint Gold
Can any of the company-specific risk be diversified away by investing in both Klondike Silver and Strikepoint 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 Klondike Silver and Strikepoint Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Klondike Silver Corp and Strikepoint Gold, you can compare the effects of market volatilities on Klondike Silver and Strikepoint 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 Klondike Silver with a short position of Strikepoint Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Klondike Silver and Strikepoint Gold.
Diversification Opportunities for Klondike Silver and Strikepoint Gold
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Klondike and Strikepoint is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Klondike Silver Corp and Strikepoint Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strikepoint Gold and Klondike Silver 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 Klondike Silver Corp are associated (or correlated) with Strikepoint Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strikepoint Gold has no effect on the direction of Klondike Silver i.e., Klondike Silver and Strikepoint Gold go up and down completely randomly.
Pair Corralation between Klondike Silver and Strikepoint Gold
Given the investment horizon of 90 days Klondike Silver Corp is expected to generate 0.87 times more return on investment than Strikepoint Gold. However, Klondike Silver Corp is 1.16 times less risky than Strikepoint Gold. It trades about -0.16 of its potential returns per unit of risk. Strikepoint Gold is currently generating about -0.27 per unit of risk. If you would invest 3.00 in Klondike Silver Corp on August 29, 2024 and sell it today you would lose (1.00) from holding Klondike Silver Corp or give up 33.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Klondike Silver Corp vs. Strikepoint Gold
Performance |
| Timeline |
| Klondike Silver Corp |
| Strikepoint Gold |
Klondike Silver and Strikepoint Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Klondike Silver and Strikepoint Gold
The main advantage of trading using opposite Klondike Silver and Strikepoint Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Klondike Silver position performs unexpectedly, Strikepoint 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 Strikepoint Gold will offset losses from the drop in Strikepoint Gold's long position.| Klondike Silver vs. Silver Grail Resources | Klondike Silver vs. Monarca Minerals | Klondike Silver vs. Gold79 Mines | Klondike Silver vs. Klondike Gold Corp |
| Strikepoint Gold vs. Monarca Minerals | Strikepoint Gold vs. Outcrop Gold Corp | Strikepoint Gold vs. Grande Portage Resources | Strikepoint Gold vs. Klondike Silver 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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