Correlation Between StrikePoint Gold and Kraken Energy
Can any of the company-specific risk be diversified away by investing in both StrikePoint Gold and Kraken Energy 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 Kraken Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between StrikePoint Gold and Kraken Energy Corp, you can compare the effects of market volatilities on StrikePoint Gold and Kraken Energy 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 Kraken Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of StrikePoint Gold and Kraken Energy.
Diversification Opportunities for StrikePoint Gold and Kraken Energy
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between StrikePoint and Kraken is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding StrikePoint Gold and Kraken Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kraken Energy Corp 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 Kraken Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kraken Energy Corp has no effect on the direction of StrikePoint Gold i.e., StrikePoint Gold and Kraken Energy go up and down completely randomly.
Pair Corralation between StrikePoint Gold and Kraken Energy
Assuming the 90 days horizon StrikePoint Gold is expected to generate 2.15 times more return on investment than Kraken Energy. However, StrikePoint Gold is 2.15 times more volatile than Kraken Energy Corp. It trades about 0.09 of its potential returns per unit of risk. Kraken Energy Corp is currently generating about -0.11 per unit of risk. If you would invest 12.00 in StrikePoint Gold on November 9, 2024 and sell it today you would earn a total of 0.00 from holding StrikePoint Gold or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
StrikePoint Gold vs. Kraken Energy Corp
Performance |
| Timeline |
| StrikePoint Gold |
| Kraken Energy Corp |
StrikePoint Gold and Kraken Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with StrikePoint Gold and Kraken Energy
The main advantage of trading using opposite StrikePoint Gold and Kraken Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if StrikePoint Gold position performs unexpectedly, Kraken Energy 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 Kraken Energy will offset losses from the drop in Kraken Energy's long position.| StrikePoint Gold vs. Commerce Resources Corp | StrikePoint Gold vs. Great Western Minerals | StrikePoint Gold vs. Silver Elephant Mining | StrikePoint Gold vs. Eskay Mining Corp |
| Kraken Energy vs. Avarone Metals | Kraken Energy vs. Adriatic Metals PLC | Kraken Energy vs. Aurelia Metals Limited | Kraken Energy vs. Huntsman Exploration |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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