Correlation Between Kesselrun Resources and Tristar Gold

Can any of the company-specific risk be diversified away by investing in both Kesselrun Resources and Tristar 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 Tristar 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 Tristar Gold, you can compare the effects of market volatilities on Kesselrun Resources and Tristar 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 Tristar Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kesselrun Resources and Tristar Gold.

Diversification Opportunities for Kesselrun Resources and Tristar Gold

0.14

Correlation Coefficient

Kesselrun Resources  Tristar Gold

Average diversification

The 3 months correlation between Kesselrun and Tristar is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Kesselrun Resources and Tristar Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tristar Gold 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 Tristar Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tristar Gold has no effect on the direction of Kesselrun Resources i.e., Kesselrun Resources and Tristar Gold go up and down completely randomly.

Pair Corralation between Kesselrun Resources and Tristar Gold

Assuming the 90 days horizon Kesselrun Resources is expected to generate 5.92 times less return on investment than Tristar Gold. In addition to that, Kesselrun Resources is 1.17 times more volatile than Tristar Gold. It trades about 0.02 of its total potential returns per unit of risk. Tristar Gold is currently generating about 0.14 per unit of volatility. If you would invest  11.00  in Tristar Gold on December 1, 2024 and sell it today you would earn a total of  7.00  from holding Tristar Gold or generate 63.64% return on investment over 90 days.

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

Kesselrun Resources  vs.  Tristar Gold

Kesselrun Resources

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Kesselrun Resources are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Kesselrun Resources may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Tristar Gold

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Tristar Gold are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Tristar Gold showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kesselrun Resources and Tristar Gold

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

The idea behind Kesselrun Resources and Tristar Gold 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.