Correlation Between K92 Mining and Ophir Gold

Can any of the company-specific risk be diversified away by investing in both K92 Mining and Ophir 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 K92 Mining and Ophir Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between K92 Mining and Ophir Gold Corp, you can compare the effects of market volatilities on K92 Mining and Ophir 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 K92 Mining with a short position of Ophir Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of K92 Mining and Ophir Gold.

Diversification Opportunities for K92 Mining and Ophir Gold

-0.05

Correlation Coefficient

K92 Mining  Ophir Gold

Good diversification

The 3 months correlation between K92 and Ophir is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding K92 Mining and Ophir Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ophir Gold Corp and K92 Mining 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 K92 Mining are associated (or correlated) with Ophir Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ophir Gold Corp has no effect on the direction of K92 Mining i.e., K92 Mining and Ophir Gold go up and down completely randomly.

Pair Corralation between K92 Mining and Ophir Gold

If you would invest  593.00  in K92 Mining on October 27, 2024 and sell it today you would earn a total of  86.00  from holding K92 Mining or generate 14.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	5.26%
Values	Daily Returns

K92 Mining  vs.  Ophir Gold Corp

K92 Mining

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in K92 Mining are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, K92 Mining may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Ophir Gold Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ophir Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward indicators, Ophir Gold is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with K92 Mining and Ophir Gold

The main advantage of trading using opposite K92 Mining and Ophir Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if K92 Mining position performs unexpectedly, Ophir 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 Ophir Gold will offset losses from the drop in Ophir Gold's long position.

The idea behind K92 Mining and Ophir 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.

Check out your portfolio center.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.