Correlation Between NamSys and Kodiak Copper

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

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

Diversification Opportunities for NamSys and Kodiak Copper

-0.21

Correlation Coefficient

NamSys  Kodiak Copper

Very good diversification

The 3 months correlation between NamSys and Kodiak is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding NamSys Inc and Kodiak Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kodiak Copper Corp and NamSys 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 NamSys Inc are associated (or correlated) with Kodiak Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kodiak Copper Corp has no effect on the direction of NamSys i.e., NamSys and Kodiak Copper go up and down completely randomly.

Pair Corralation between NamSys and Kodiak Copper

Assuming the 90 days horizon NamSys is expected to generate 4.04 times less return on investment than Kodiak Copper. In addition to that, NamSys is 1.04 times more volatile than Kodiak Copper Corp. It trades about 0.03 of its total potential returns per unit of risk. Kodiak Copper Corp is currently generating about 0.15 per unit of volatility. If you would invest  36.00  in Kodiak Copper Corp on December 29, 2024 and sell it today you would earn a total of  14.00  from holding Kodiak Copper Corp or generate 38.89% return on investment over 90 days.

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

NamSys Inc  vs.  Kodiak Copper Corp

NamSys Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in NamSys Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, NamSys may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Kodiak Copper Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kodiak Copper Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Kodiak Copper showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with NamSys and Kodiak Copper

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

The idea behind NamSys Inc and Kodiak Copper 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.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..