Correlation Between Victoria Gold and K92 Mining

Can any of the company-specific risk be diversified away by investing in both Victoria Gold and K92 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 Victoria Gold and K92 Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Victoria Gold Corp and K92 Mining, you can compare the effects of market volatilities on Victoria Gold and K92 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 Victoria Gold with a short position of K92 Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victoria Gold and K92 Mining.

Diversification Opportunities for Victoria Gold and K92 Mining

0.0

Correlation Coefficient

Victoria Gold  K92 Mining

Pay attention - limited upside

The 3 months correlation between Victoria and K92 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Victoria Gold Corp and K92 Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on K92 Mining and Victoria Gold 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 Victoria Gold Corp are associated (or correlated) with K92 Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of K92 Mining has no effect on the direction of Victoria Gold i.e., Victoria Gold and K92 Mining go up and down completely randomly.

Pair Corralation between Victoria Gold and K92 Mining

If you would invest  552.00  in K92 Mining on September 11, 2024 and sell it today you would earn a total of  126.00  from holding K92 Mining or generate 22.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Victoria Gold Corp  vs.  K92 Mining

Victoria Gold Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Victoria Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Victoria Gold is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

K92 Mining

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in K92 Mining are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal basic indicators, K92 Mining reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Victoria Gold and K92 Mining

The main advantage of trading using opposite Victoria Gold and K92 Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victoria Gold position performs unexpectedly, K92 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 K92 Mining will offset losses from the drop in K92 Mining's long position.

The idea behind Victoria Gold Corp and K92 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.