Correlation Between Maple Gold and Kinross Gold
Can any of the company-specific risk be diversified away by investing in both Maple Gold and Kinross 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 Maple Gold and Kinross Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maple Gold Mines and Kinross Gold, you can compare the effects of market volatilities on Maple Gold and Kinross 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 Maple Gold with a short position of Kinross Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Gold and Kinross Gold.
Diversification Opportunities for Maple Gold and Kinross Gold
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Maple and Kinross is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Maple Gold Mines and Kinross Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinross Gold and Maple 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 Maple Gold Mines are associated (or correlated) with Kinross Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinross Gold has no effect on the direction of Maple Gold i.e., Maple Gold and Kinross Gold go up and down completely randomly.
Pair Corralation between Maple Gold and Kinross Gold
Assuming the 90 days horizon Maple Gold is expected to generate 3.6 times less return on investment than Kinross Gold. In addition to that, Maple Gold is 2.35 times more volatile than Kinross Gold. It trades about 0.03 of its total potential returns per unit of risk. Kinross Gold is currently generating about 0.25 per unit of volatility. If you would invest 907.00 in Kinross Gold on October 20, 2024 and sell it today you would earn a total of 124.00 from holding Kinross Gold or generate 13.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Maple Gold Mines vs. Kinross Gold
Performance |
| Timeline |
| Maple Gold Mines |
| Kinross Gold |
Maple Gold and Kinross Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maple Gold and Kinross Gold
The main advantage of trading using opposite Maple Gold and Kinross Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple Gold position performs unexpectedly, Kinross 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 Kinross Gold will offset losses from the drop in Kinross Gold's long position.| Maple Gold vs. Steppe Gold | Maple Gold vs. Caledonia Mining | Maple Gold vs. Fortuna Silver Mines | Maple Gold vs. Sandstorm Gold Ltd |
| Kinross Gold vs. Pan American Silver | Kinross Gold vs. Newmont Goldcorp Corp | Kinross Gold vs. Wheaton Precious Metals | Kinross Gold vs. Franco Nevada |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |