Correlation Between Kesselrun Resources and Prosper Gold

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

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

Diversification Opportunities for Kesselrun Resources and Prosper Gold

0.44

Correlation Coefficient

Kesselrun Resources  Prosper Gold

Very weak diversification

The 3 months correlation between Kesselrun and Prosper is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Kesselrun Resources and Prosper Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prosper Gold Corp and Kesselrun 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 Kesselrun Resources are associated (or correlated) with Prosper Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prosper Gold Corp has no effect on the direction of Kesselrun Resources i.e., Kesselrun Resources and Prosper Gold go up and down completely randomly.

Pair Corralation between Kesselrun Resources and Prosper Gold

Assuming the 90 days horizon Kesselrun Resources is expected to generate 1.48 times more return on investment than Prosper Gold. However, Kesselrun Resources is 1.48 times more volatile than Prosper Gold Corp. It trades about 0.05 of its potential returns per unit of risk. Prosper Gold Corp is currently generating about 0.03 per unit of risk. If you would invest  3.50  in Kesselrun Resources on December 23, 2024 and sell it today you would earn a total of  0.00  from holding Kesselrun Resources or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

Kesselrun Resources  vs.  Prosper Gold Corp

Kesselrun Resources

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Kesselrun Resources are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Kesselrun Resources showed solid returns over the last few months and may actually be approaching a breakup point.

Prosper Gold Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Prosper Gold Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Prosper Gold showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kesselrun Resources and Prosper Gold

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

The idea behind Kesselrun Resources and Prosper Gold 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 CEOs Directory module to screen CEOs from public companies around the world.