Correlation Between Metalero Mining and Kinross Gold
Can any of the company-specific risk be diversified away by investing in both Metalero Mining 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 Metalero Mining and Kinross Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metalero Mining Corp and Kinross Gold Corp, you can compare the effects of market volatilities on Metalero Mining 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 Metalero Mining with a short position of Kinross Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metalero Mining and Kinross Gold.
Diversification Opportunities for Metalero Mining and Kinross Gold
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Metalero and Kinross is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Metalero Mining Corp and Kinross Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinross Gold Corp and Metalero Mining 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 Metalero Mining Corp 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 Corp has no effect on the direction of Metalero Mining i.e., Metalero Mining and Kinross Gold go up and down completely randomly.
Pair Corralation between Metalero Mining and Kinross Gold
Assuming the 90 days horizon Metalero Mining Corp is expected to generate 7.41 times more return on investment than Kinross Gold. However, Metalero Mining is 7.41 times more volatile than Kinross Gold Corp. It trades about 0.07 of its potential returns per unit of risk. Kinross Gold Corp is currently generating about 0.09 per unit of risk. If you would invest 15.00 in Metalero Mining Corp on August 31, 2024 and sell it today you would lose (1.00) from holding Metalero Mining Corp or give up 6.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.32% |
| Values | Daily Returns |
Metalero Mining Corp vs. Kinross Gold Corp
Performance |
| Timeline |
| Metalero Mining Corp |
| Kinross Gold Corp |
Metalero Mining and Kinross Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metalero Mining and Kinross Gold
The main advantage of trading using opposite Metalero Mining and Kinross Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metalero Mining 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.| Metalero Mining vs. Newmont Goldcorp Corp | Metalero Mining vs. Agnico Eagle Mines | Metalero Mining vs. Barrick Gold Corp | Metalero Mining vs. Wheaton Precious Metals |
| Kinross Gold vs. Barrick Gold Corp | Kinross Gold vs. Eldorado Gold Corp | Kinross Gold vs. IAMGold | Kinross Gold vs. Agnico Eagle Mines |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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