Correlation Between Maple Gold and Karora Resources
Can any of the company-specific risk be diversified away by investing in both Maple Gold and Karora Resources 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 Karora Resources 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 Karora Resources, you can compare the effects of market volatilities on Maple Gold and Karora Resources 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 Karora Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Gold and Karora Resources.
Diversification Opportunities for Maple Gold and Karora Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Maple and Karora is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Maple Gold Mines and Karora Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karora Resources 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 Karora Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Karora Resources has no effect on the direction of Maple Gold i.e., Maple Gold and Karora Resources go up and down completely randomly.
Pair Corralation between Maple Gold and Karora Resources
Assuming the 90 days horizon Maple Gold Mines is expected to under-perform the Karora Resources. In addition to that, Maple Gold is 2.19 times more volatile than Karora Resources. It trades about -0.02 of its total potential returns per unit of risk. Karora Resources is currently generating about 0.04 per unit of volatility. If you would invest 381.00 in Karora Resources on October 21, 2024 and sell it today you would earn a total of 102.00 from holding Karora Resources or generate 26.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 76.81% |
| Values | Daily Returns |
Maple Gold Mines vs. Karora Resources
Performance |
| Timeline |
| Maple Gold Mines |
| Karora Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Maple Gold and Karora Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maple Gold and Karora Resources
The main advantage of trading using opposite Maple Gold and Karora Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple Gold position performs unexpectedly, Karora Resources 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 Karora Resources will offset losses from the drop in Karora Resources' long position.| Maple Gold vs. Steppe Gold | Maple Gold vs. Caledonia Mining | Maple Gold vs. Fortuna Silver Mines | Maple Gold vs. Sandstorm Gold Ltd |
| Karora Resources vs. K92 Mining | Karora Resources vs. I 80 Gold Corp | Karora Resources vs. Wesdome Gold Mines | Karora Resources vs. GGX Gold 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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