Correlation Between Roscan Gold and Kalo Gold
Can any of the company-specific risk be diversified away by investing in both Roscan Gold 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 Roscan Gold and Kalo Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Roscan Gold Corp and Kalo Gold Holdings, you can compare the effects of market volatilities on Roscan Gold 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 Roscan Gold with a short position of Kalo Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roscan Gold and Kalo Gold.
Diversification Opportunities for Roscan Gold and Kalo Gold
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Roscan and Kalo is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Roscan Gold Corp 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 Roscan 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 Roscan Gold Corp 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 Roscan Gold i.e., Roscan Gold and Kalo Gold go up and down completely randomly.
Pair Corralation between Roscan Gold and Kalo Gold
Assuming the 90 days horizon Roscan Gold Corp is expected to generate 0.51 times more return on investment than Kalo Gold. However, Roscan Gold Corp is 1.96 times less risky than Kalo Gold. It trades about -0.05 of its potential returns per unit of risk. Kalo Gold Holdings is currently generating about -0.06 per unit of risk. If you would invest 6.10 in Roscan Gold Corp on September 5, 2024 and sell it today you would lose (0.72) from holding Roscan Gold Corp or give up 11.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Roscan Gold Corp vs. Kalo Gold Holdings
Performance |
| Timeline |
| Roscan Gold Corp |
| Kalo Gold Holdings |
Roscan Gold and Kalo Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Roscan Gold and Kalo Gold
The main advantage of trading using opposite Roscan Gold and Kalo Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roscan Gold 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.| Roscan Gold vs. Aurion Resources | Roscan Gold vs. Minera Alamos | Roscan Gold vs. Rio2 Limited | Roscan Gold vs. Kalo Gold Holdings |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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