Correlation Between Kopernik Global and Ab Government

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

By analyzing existing cross correlation between Kopernik Global All Cap and Ab Government Exchange, you can compare the effects of market volatilities on Kopernik Global and Ab Government 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 Kopernik Global with a short position of Ab Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kopernik Global and Ab Government.

Diversification Opportunities for Kopernik Global and Ab Government

0.0

Correlation Coefficient

Kopernik Global  Ab Government

Pay attention - limited upside

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

Pair Corralation between Kopernik Global and Ab Government

If you would invest  1,102  in Kopernik Global All Cap on December 28, 2024 and sell it today you would earn a total of  172.00  from holding Kopernik Global All Cap or generate 15.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

Kopernik Global All Cap  vs.  Ab Government Exchange

Kopernik Global All

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Kopernik Global All Cap are ranked lower than 25 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Kopernik Global showed solid returns over the last few months and may actually be approaching a breakup point.

Ab Government Exchange

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ab Government Exchange has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Ab Government is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Kopernik Global and Ab Government

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

The idea behind Kopernik Global All Cap and Ab Government Exchange 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.