Correlation Between United States and Kinross Gold
Can any of the company-specific risk be diversified away by investing in both United States 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 United States and Kinross Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United States Steel and Kinross Gold, you can compare the effects of market volatilities on United States 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 United States with a short position of Kinross Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of United States and Kinross Gold.
Diversification Opportunities for United States and Kinross Gold
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between United and Kinross is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding United States Steel and Kinross Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinross Gold and United States 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 United States Steel 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 United States i.e., United States and Kinross Gold go up and down completely randomly.
Pair Corralation between United States and Kinross Gold
Taking into account the 90-day investment horizon United States Steel is expected to generate 0.96 times more return on investment than Kinross Gold. However, United States Steel is 1.04 times less risky than Kinross Gold. It trades about 0.03 of its potential returns per unit of risk. Kinross Gold is currently generating about -0.02 per unit of risk. If you would invest 3,874 in United States Steel on August 26, 2024 and sell it today you would earn a total of 29.00 from holding United States Steel or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United States Steel vs. Kinross Gold
Performance |
| Timeline |
| United States Steel |
| Kinross Gold |
United States and Kinross Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United States and Kinross Gold
The main advantage of trading using opposite United States and Kinross Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United States 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.| United States vs. Nucor Corp | United States vs. Steel Dynamics | United States vs. ArcelorMittal SA ADR | United States vs. Gerdau SA ADR |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |