Correlation Between Kiplin Metals and Minnova Corp

Can any of the company-specific risk be diversified away by investing in both Kiplin Metals and Minnova Corp 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 Kiplin Metals and Minnova Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Kiplin Metals and Minnova Corp

0.0

Correlation Coefficient

Kiplin Metals  Minnova Corp

Pay attention - limited upside

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

Pair Corralation between Kiplin Metals and Minnova Corp

If you would invest  23.00  in Kiplin Metals on December 1, 2024 and sell it today you would earn a total of  8.00  from holding Kiplin Metals or generate 34.78% return on investment over 90 days.

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

Kiplin Metals  vs.  Minnova Corp

Kiplin Metals

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Kiplin Metals are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Kiplin Metals showed solid returns over the last few months and may actually be approaching a breakup point.

Minnova Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Minnova Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Minnova Corp is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Kiplin Metals and Minnova Corp

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

The idea behind Kiplin Metals and Minnova 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.