Correlation Between Grande Portage and Kore Mining

Can any of the company-specific risk be diversified away by investing in both Grande Portage 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 Grande Portage and Kore Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Grande Portage Resources and Kore Mining, you can compare the effects of market volatilities on Grande Portage 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 Grande Portage with a short position of Kore Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grande Portage and Kore Mining.

Diversification Opportunities for Grande Portage and Kore Mining

0.2

Correlation Coefficient

Grande Portage  Kore Mining

Modest diversification

The 3 months correlation between Grande and Kore is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Grande Portage Resources and Kore Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kore Mining and Grande Portage 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 Grande Portage Resources 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 Grande Portage i.e., Grande Portage and Kore Mining go up and down completely randomly.

Pair Corralation between Grande Portage and Kore Mining

Assuming the 90 days horizon Grande Portage Resources is expected to under-perform the Kore Mining. But the stock apears to be less risky and, when comparing its historical volatility, Grande Portage Resources is 1.71 times less risky than Kore Mining. The stock trades about -0.01 of its potential returns per unit of risk. The Kore Mining is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  3.00  in Kore Mining on September 14, 2024 and sell it today you would earn a total of  0.00  from holding Kore Mining or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Grande Portage Resources  vs.  Kore Mining

Grande Portage Resources

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Grande Portage Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Grande Portage is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Kore Mining

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Kore Mining are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Kore Mining showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Grande Portage and Kore Mining

The main advantage of trading using opposite Grande Portage and Kore Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grande Portage 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.

The idea behind Grande Portage Resources and Kore Mining pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.