Correlation Between Rochester Resources and Kinross Gold
Can any of the company-specific risk be diversified away by investing in both Rochester Resources 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 Rochester Resources and Kinross Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rochester Resources and Kinross Gold, you can compare the effects of market volatilities on Rochester Resources 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 Rochester Resources with a short position of Kinross Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rochester Resources and Kinross Gold.
Diversification Opportunities for Rochester Resources and Kinross Gold
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rochester and Kinross is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Rochester Resources and Kinross Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinross Gold and Rochester Resources 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 Rochester Resources 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 Rochester Resources i.e., Rochester Resources and Kinross Gold go up and down completely randomly.
Pair Corralation between Rochester Resources and Kinross Gold
If you would invest 453.00 in Kinross Gold on January 24, 2024 and sell it today you would earn a total of 194.00 from holding Kinross Gold or generate 42.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Rochester Resources vs. Kinross Gold
Performance |
| Timeline |
| Rochester Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Kinross Gold |
Rochester Resources and Kinross Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rochester Resources and Kinross Gold
The main advantage of trading using opposite Rochester Resources and Kinross Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rochester Resources 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.| Rochester Resources vs. Argo Gold | Rochester Resources vs. Advance Gold Corp | Rochester Resources vs. Blue Star Gold | Rochester Resources vs. Minnova 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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