Correlation Between Kraken Energy and Eskay Mining
Can any of the company-specific risk be diversified away by investing in both Kraken Energy and Eskay 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 Kraken Energy and Eskay Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kraken Energy Corp and Eskay Mining Corp, you can compare the effects of market volatilities on Kraken Energy and Eskay 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 Kraken Energy with a short position of Eskay Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kraken Energy and Eskay Mining.
Diversification Opportunities for Kraken Energy and Eskay Mining
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kraken and Eskay is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Kraken Energy Corp and Eskay Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eskay Mining Corp and Kraken Energy 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 Kraken Energy Corp are associated (or correlated) with Eskay Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eskay Mining Corp has no effect on the direction of Kraken Energy i.e., Kraken Energy and Eskay Mining go up and down completely randomly.
Pair Corralation between Kraken Energy and Eskay Mining
Assuming the 90 days horizon Kraken Energy Corp is expected to under-perform the Eskay Mining. In addition to that, Kraken Energy is 1.5 times more volatile than Eskay Mining Corp. It trades about -0.03 of its total potential returns per unit of risk. Eskay Mining Corp is currently generating about -0.02 per unit of volatility. If you would invest 57.00 in Eskay Mining Corp on November 27, 2024 and sell it today you would lose (43.00) from holding Eskay Mining Corp or give up 75.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Kraken Energy Corp vs. Eskay Mining Corp
Performance |
| Timeline |
| Kraken Energy Corp |
| Eskay Mining Corp |
Kraken Energy and Eskay Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kraken Energy and Eskay Mining
The main advantage of trading using opposite Kraken Energy and Eskay Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kraken Energy position performs unexpectedly, Eskay 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 Eskay Mining will offset losses from the drop in Eskay Mining's long position.| Kraken Energy vs. Avarone Metals | Kraken Energy vs. Adriatic Metals PLC | Kraken Energy vs. Aurelia Metals Limited | Kraken Energy vs. Huntsman Exploration |
| Eskay Mining vs. Aftermath Silver | Eskay Mining vs. Group Ten Metals | Eskay Mining vs. Prime Mining Corp | Eskay Mining vs. Juggernaut 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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