Correlation Between Robex Resources and Karora Resources
Can any of the company-specific risk be diversified away by investing in both Robex Resources 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 Robex Resources and Karora Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Robex Resources and Karora Resources, you can compare the effects of market volatilities on Robex Resources 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 Robex Resources with a short position of Karora Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robex Resources and Karora Resources.
Diversification Opportunities for Robex Resources and Karora Resources
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Robex and Karora is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Robex Resources and Karora Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karora Resources and Robex Resources 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 Robex Resources 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 Robex Resources i.e., Robex Resources and Karora Resources go up and down completely randomly.
Pair Corralation between Robex Resources and Karora Resources
Assuming the 90 days horizon Robex Resources is expected to generate 28.03 times more return on investment than Karora Resources. However, Robex Resources is 28.03 times more volatile than Karora Resources. It trades about 0.07 of its potential returns per unit of risk. Karora Resources is currently generating about 0.12 per unit of risk. If you would invest 190.00 in Robex Resources on August 29, 2024 and sell it today you would lose (25.00) from holding Robex Resources or give up 13.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Robex Resources vs. Karora Resources
Performance |
| Timeline |
| Robex Resources |
| Karora Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Robex Resources and Karora Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Robex Resources and Karora Resources
The main advantage of trading using opposite Robex Resources and Karora Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robex Resources 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.| Robex Resources vs. Orefinders Resources | Robex Resources vs. Leviathan Gold | Robex Resources vs. Gold Bull Resources | Robex Resources vs. Rackla Metals |
| 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 Stocks Directory module to find actively traded stocks across global markets.
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