Correlation Between Matador Mining and Kalo Gold
Can any of the company-specific risk be diversified away by investing in both Matador Mining and Kalo 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 Matador Mining and Kalo Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matador Mining Limited and Kalo Gold Holdings, you can compare the effects of market volatilities on Matador Mining and Kalo 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 Matador Mining with a short position of Kalo Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matador Mining and Kalo Gold.
Diversification Opportunities for Matador Mining and Kalo Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Matador and Kalo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Matador Mining Limited and Kalo Gold Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kalo Gold Holdings and Matador 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 Matador Mining Limited are associated (or correlated) with Kalo Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kalo Gold Holdings has no effect on the direction of Matador Mining i.e., Matador Mining and Kalo Gold go up and down completely randomly.
Pair Corralation between Matador Mining and Kalo Gold
If you would invest 2.62 in Kalo Gold Holdings on November 9, 2024 and sell it today you would earn a total of 0.00 from holding Kalo Gold Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Matador Mining Limited vs. Kalo Gold Holdings
Performance |
| Timeline |
| Matador Mining |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Kalo Gold Holdings |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Matador Mining and Kalo Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matador Mining and Kalo Gold
The main advantage of trading using opposite Matador Mining and Kalo Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matador Mining position performs unexpectedly, Kalo 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 Kalo Gold will offset losses from the drop in Kalo Gold's long position.| Matador Mining vs. Rio2 Limited | Matador Mining vs. Aurion Resources | Matador Mining vs. Norsemont Mining | Matador Mining vs. Minaurum Gold |
| Kalo Gold vs. Big Ridge Gold | Kalo Gold vs. Radisson Mining Resources | Kalo Gold vs. Roscan Gold Corp | Kalo Gold vs. Independence 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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