Correlation Between Kodiak Copper and Mirasol Resources

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

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

Diversification Opportunities for Kodiak Copper and Mirasol Resources

0.0

Correlation Coefficient

Kodiak Copper  Mirasol Resources

Pay attention - limited upside

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

Pair Corralation between Kodiak Copper and Mirasol Resources

Assuming the 90 days horizon Kodiak Copper Corp is expected to under-perform the Mirasol Resources. But the otc stock apears to be less risky and, when comparing its historical volatility, Kodiak Copper Corp is 1.2 times less risky than Mirasol Resources. The otc stock trades about -0.02 of its potential returns per unit of risk. The Mirasol Resources is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  53.00  in Mirasol Resources on September 14, 2024 and sell it today you would lose (12.00) from holding Mirasol Resources or give up 22.64% of portfolio value over 90 days.

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

Kodiak Copper Corp  vs.  Mirasol Resources

Kodiak Copper Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kodiak Copper Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Mirasol Resources

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Mirasol Resources are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, Mirasol Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kodiak Copper and Mirasol Resources

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

The idea behind Kodiak Copper Corp and Mirasol Resources 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.