Correlation Between Adventus Mining and Kraken Energy

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

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

Diversification Opportunities for Adventus Mining and Kraken Energy

0.0

Correlation Coefficient

Adventus Mining  Kraken Energy

Pay attention - limited upside

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

Pair Corralation between Adventus Mining and Kraken Energy

If you would invest  2.54  in Kraken Energy Corp on December 1, 2024 and sell it today you would lose (0.74) from holding Kraken Energy Corp or give up 29.13% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Adventus Mining  vs.  Kraken Energy Corp

Adventus Mining

Risk-Adjusted Performance

Very Weak

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

Kraken Energy Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kraken Energy Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly fragile basic indicators, Kraken Energy may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Adventus Mining and Kraken Energy

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

The idea behind Adventus Mining and Kraken Energy Corp 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.