Correlation Between Strikepoint Gold and Kore Mining
Can any of the company-specific risk be diversified away by investing in both Strikepoint Gold and Kore Mining 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 Strikepoint Gold and Kore Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strikepoint Gold and Kore Mining, you can compare the effects of market volatilities on Strikepoint Gold and Kore Mining 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 Strikepoint Gold with a short position of Kore Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strikepoint Gold and Kore Mining.
Diversification Opportunities for Strikepoint Gold and Kore Mining
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Strikepoint and Kore is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Strikepoint Gold and Kore Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kore Mining and Strikepoint 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 Strikepoint Gold are associated (or correlated) with Kore Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kore Mining has no effect on the direction of Strikepoint Gold i.e., Strikepoint Gold and Kore Mining go up and down completely randomly.
Pair Corralation between Strikepoint Gold and Kore Mining
Assuming the 90 days horizon Strikepoint Gold is expected to under-perform the Kore Mining. In addition to that, Strikepoint Gold is 1.6 times more volatile than Kore Mining. It trades about -0.28 of its total potential returns per unit of risk. Kore Mining is currently generating about -0.06 per unit of volatility. If you would invest 4.00 in Kore Mining on August 29, 2024 and sell it today you would lose (0.50) from holding Kore Mining or give up 12.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strikepoint Gold vs. Kore Mining
Performance |
| Timeline |
| Strikepoint Gold |
| Kore Mining |
Strikepoint Gold and Kore Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strikepoint Gold and Kore Mining
The main advantage of trading using opposite Strikepoint Gold and Kore Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strikepoint Gold position performs unexpectedly, Kore Mining 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 Kore Mining will offset losses from the drop in Kore Mining's long position.| Strikepoint Gold vs. First Majestic Silver | Strikepoint Gold vs. Ivanhoe Energy | Strikepoint Gold vs. Orezone Gold Corp | Strikepoint Gold vs. Faraday Copper Corp |
| Kore Mining vs. Outcrop Gold Corp | Kore Mining vs. Grande Portage Resources | Kore Mining vs. Bluestone Resources | Kore Mining vs. Lumina 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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