Correlation Between Black Mammoth and Knife River
Can any of the company-specific risk be diversified away by investing in both Black Mammoth and Knife River 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 Black Mammoth and Knife River into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Black Mammoth Metals and Knife River, you can compare the effects of market volatilities on Black Mammoth and Knife River 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 Black Mammoth with a short position of Knife River. Check out your portfolio center. Please also check ongoing floating volatility patterns of Black Mammoth and Knife River.
Diversification Opportunities for Black Mammoth and Knife River
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Black and Knife is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Black Mammoth Metals and Knife River in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knife River and Black Mammoth 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 Black Mammoth Metals are associated (or correlated) with Knife River. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knife River has no effect on the direction of Black Mammoth i.e., Black Mammoth and Knife River go up and down completely randomly.
Pair Corralation between Black Mammoth and Knife River
Assuming the 90 days horizon Black Mammoth Metals is expected to generate 1.66 times more return on investment than Knife River. However, Black Mammoth is 1.66 times more volatile than Knife River. It trades about 0.18 of its potential returns per unit of risk. Knife River is currently generating about 0.04 per unit of risk. If you would invest 72.00 in Black Mammoth Metals on November 5, 2024 and sell it today you would earn a total of 11.00 from holding Black Mammoth Metals or generate 15.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Black Mammoth Metals vs. Knife River
Performance |
| Timeline |
| Black Mammoth Metals |
| Knife River |
Black Mammoth and Knife River Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Black Mammoth and Knife River
The main advantage of trading using opposite Black Mammoth and Knife River positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Black Mammoth position performs unexpectedly, Knife River 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 Knife River will offset losses from the drop in Knife River's long position.| Black Mammoth vs. Churchill Resources | Black Mammoth vs. Western Troy Capital | Black Mammoth vs. Kenorland Minerals | Black Mammoth vs. Beyond Minerals |
| Knife River vs. RH | Knife River vs. Treasury Wine Estates | Knife River vs. Oatly Group AB | Knife River vs. Naked Wines plc |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |