Correlation Between Wheaton Precious and Kinross Gold
Can any of the company-specific risk be diversified away by investing in both Wheaton Precious and Kinross 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 Wheaton Precious and Kinross Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wheaton Precious Metals and Kinross Gold, you can compare the effects of market volatilities on Wheaton Precious and Kinross 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 Wheaton Precious with a short position of Kinross Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wheaton Precious and Kinross Gold.
Diversification Opportunities for Wheaton Precious and Kinross Gold
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wheaton and Kinross is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Wheaton Precious Metals and Kinross Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinross Gold and Wheaton Precious 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 Wheaton Precious Metals are associated (or correlated) with Kinross Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinross Gold has no effect on the direction of Wheaton Precious i.e., Wheaton Precious and Kinross Gold go up and down completely randomly.
Pair Corralation between Wheaton Precious and Kinross Gold
Considering the 90-day investment horizon Wheaton Precious Metals is expected to under-perform the Kinross Gold. But the stock apears to be less risky and, when comparing its historical volatility, Wheaton Precious Metals is 1.54 times less risky than Kinross Gold. The stock trades about -0.11 of its potential returns per unit of risk. The Kinross Gold is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 1,071 in Kinross Gold on August 24, 2024 and sell it today you would lose (63.00) from holding Kinross Gold or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wheaton Precious Metals vs. Kinross Gold
Performance |
| Timeline |
| Wheaton Precious Metals |
| Kinross Gold |
Wheaton Precious and Kinross Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wheaton Precious and Kinross Gold
The main advantage of trading using opposite Wheaton Precious and Kinross Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wheaton Precious position performs unexpectedly, Kinross 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 Kinross Gold will offset losses from the drop in Kinross Gold's long position.| Wheaton Precious vs. Royal Gold | Wheaton Precious vs. Agnico Eagle Mines | Wheaton Precious vs. Sandstorm Gold Ltd | Wheaton Precious vs. Osisko Gold Ro |
| Kinross Gold vs. Pan American Silver | Kinross Gold vs. Newmont Goldcorp Corp | Kinross Gold vs. Wheaton Precious Metals | Kinross Gold vs. Franco Nevada |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |