Correlation Between Kutcho Copper and GR Silver

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

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

Diversification Opportunities for Kutcho Copper and GR Silver

0.67

Correlation Coefficient

Kutcho Copper  GR Silver

Poor diversification

The 3 months correlation between Kutcho and GRSL is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Kutcho Copper Corp and GR Silver Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GR Silver Mining and Kutcho Copper 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 Kutcho Copper Corp are associated (or correlated) with GR Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GR Silver Mining has no effect on the direction of Kutcho Copper i.e., Kutcho Copper and GR Silver go up and down completely randomly.

Pair Corralation between Kutcho Copper and GR Silver

Given the investment horizon of 90 days Kutcho Copper is expected to generate 3.09 times less return on investment than GR Silver. But when comparing it to its historical volatility, Kutcho Copper Corp is 1.2 times less risky than GR Silver. It trades about 0.04 of its potential returns per unit of risk. GR Silver Mining is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  5.50  in GR Silver Mining on October 8, 2024 and sell it today you would earn a total of  12.50  from holding GR Silver Mining or generate 227.27% return on investment over 90 days.

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

Kutcho Copper Corp  vs.  GR Silver Mining

Kutcho Copper Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kutcho Copper Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

GR Silver Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GR Silver Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Kutcho Copper and GR Silver

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

The idea behind Kutcho Copper Corp and GR Silver 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.

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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.