Correlation Between Klondike Silver and Great Atlantic
Can any of the company-specific risk be diversified away by investing in both Klondike Silver and Great Atlantic 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 Klondike Silver and Great Atlantic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Klondike Silver Corp and Great Atlantic Resources, you can compare the effects of market volatilities on Klondike Silver and Great Atlantic 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 Klondike Silver with a short position of Great Atlantic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Klondike Silver and Great Atlantic.
Diversification Opportunities for Klondike Silver and Great Atlantic
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Klondike and Great is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Klondike Silver Corp and Great Atlantic Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Atlantic Resources and Klondike Silver 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 Klondike Silver Corp are associated (or correlated) with Great Atlantic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Atlantic Resources has no effect on the direction of Klondike Silver i.e., Klondike Silver and Great Atlantic go up and down completely randomly.
Pair Corralation between Klondike Silver and Great Atlantic
If you would invest 2.00 in Klondike Silver Corp on September 24, 2024 and sell it today you would earn a total of 0.00 from holding Klondike Silver Corp or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Klondike Silver Corp vs. Great Atlantic Resources
Performance |
Timeline |
Klondike Silver Corp |
Great Atlantic Resources |
Klondike Silver and Great Atlantic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Klondike Silver and Great Atlantic
The main advantage of trading using opposite Klondike Silver and Great Atlantic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Klondike Silver position performs unexpectedly, Great Atlantic 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 Great Atlantic will offset losses from the drop in Great Atlantic's long position.Klondike Silver vs. Wildsky Resources | Klondike Silver vs. Q Gold Resources | Klondike Silver vs. Plato Gold Corp | Klondike Silver vs. MAS Gold Corp |
Great Atlantic vs. Monarca Minerals | Great Atlantic vs. Outcrop Gold Corp | Great Atlantic vs. Grande Portage Resources | Great Atlantic vs. Klondike Silver Corp |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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