Correlation Between Montage Gold and KORE Mining
Can any of the company-specific risk be diversified away by investing in both Montage Gold and KORE Mining 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 Montage Gold and KORE Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Montage Gold Corp and KORE Mining, you can compare the effects of market volatilities on Montage Gold and KORE Mining 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 Montage Gold with a short position of KORE Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Montage Gold and KORE Mining.
Diversification Opportunities for Montage Gold and KORE Mining
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Montage and KORE is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Montage Gold Corp and KORE Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KORE Mining and Montage Gold 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 Montage Gold Corp are associated (or correlated) with KORE Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KORE Mining has no effect on the direction of Montage Gold i.e., Montage Gold and KORE Mining go up and down completely randomly.
Pair Corralation between Montage Gold and KORE Mining
Assuming the 90 days horizon Montage Gold Corp is expected to generate 0.26 times more return on investment than KORE Mining. However, Montage Gold Corp is 3.83 times less risky than KORE Mining. It trades about -0.24 of its potential returns per unit of risk. KORE Mining is currently generating about -0.08 per unit of risk. 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 |
Montage Gold Corp vs. KORE Mining
Performance |
| Timeline |
| Montage Gold Corp |
| KORE Mining |
Montage Gold and KORE Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Montage Gold and KORE Mining
The main advantage of trading using opposite Montage Gold and KORE Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Montage Gold position performs unexpectedly, KORE Mining 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 KORE Mining will offset losses from the drop in KORE Mining's long position.| Montage Gold vs. Aurion Resources | Montage Gold vs. Rio2 Limited | Montage Gold vs. Palamina Corp | Montage Gold vs. BTU Metals Corp |
| KORE Mining vs. Aurion Resources | KORE Mining vs. Rio2 Limited | KORE Mining vs. Palamina Corp | KORE Mining 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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