Correlation Between Platinum Group and Kodiak Copper
Can any of the company-specific risk be diversified away by investing in both Platinum Group and Kodiak Copper 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 Platinum Group and Kodiak Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Platinum Group Metals and Kodiak Copper Corp, you can compare the effects of market volatilities on Platinum Group and Kodiak Copper 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 Platinum Group with a short position of Kodiak Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Group and Kodiak Copper.
Diversification Opportunities for Platinum Group and Kodiak Copper
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Platinum and Kodiak is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Group Metals and Kodiak Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kodiak Copper Corp and Platinum Group 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 Platinum Group Metals are associated (or correlated) with Kodiak Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kodiak Copper Corp has no effect on the direction of Platinum Group i.e., Platinum Group and Kodiak Copper go up and down completely randomly.
Pair Corralation between Platinum Group and Kodiak Copper
Considering the 90-day investment horizon Platinum Group Metals is expected to generate 1.02 times more return on investment than Kodiak Copper. However, Platinum Group is 1.02 times more volatile than Kodiak Copper Corp. It trades about 0.01 of its potential returns per unit of risk. Kodiak Copper Corp is currently generating about -0.01 per unit of risk. If you would invest 176.00 in Platinum Group Metals on January 13, 2025 and sell it today you would lose (50.00) from holding Platinum Group Metals or give up 28.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Platinum Group Metals vs. Kodiak Copper Corp
Performance |
| Timeline |
| Platinum Group Metals |
| Kodiak Copper Corp |
Platinum Group and Kodiak Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum Group and Kodiak Copper
The main advantage of trading using opposite Platinum Group and Kodiak Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Group position performs unexpectedly, Kodiak Copper 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 Kodiak Copper will offset losses from the drop in Kodiak Copper's long position.| Platinum Group vs. Endeavour Silver Corp | Platinum Group vs. Avino Silver Gold | Platinum Group vs. Fortuna Silver Mines | Platinum Group vs. Impala Platinum Holdings |
| Kodiak Copper vs. Chesapeake Gold Corp | Kodiak Copper vs. Usha Resources | Kodiak Copper vs. American Copper Development | Kodiak Copper vs. Endeavour Silver 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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