Correlation Between XXIX Metal and KDA
Can any of the company-specific risk be diversified away by investing in both XXIX Metal and KDA 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 XXIX Metal and KDA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XXIX Metal Corp and KDA Group, you can compare the effects of market volatilities on XXIX Metal and KDA 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 XXIX Metal with a short position of KDA. Check out your portfolio center. Please also check ongoing floating volatility patterns of XXIX Metal and KDA.
Diversification Opportunities for XXIX Metal and KDA
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between XXIX and KDA is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding XXIX Metal Corp and KDA Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KDA Group and XXIX Metal 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 XXIX Metal Corp are associated (or correlated) with KDA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KDA Group has no effect on the direction of XXIX Metal i.e., XXIX Metal and KDA go up and down completely randomly.
Pair Corralation between XXIX Metal and KDA
Assuming the 90 days trading horizon XXIX Metal Corp is expected to under-perform the KDA. But the stock apears to be less risky and, when comparing its historical volatility, XXIX Metal Corp is 1.35 times less risky than KDA. The stock trades about -0.01 of its potential returns per unit of risk. The KDA Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 28.00 in KDA Group on October 5, 2024 and sell it today you would earn a total of 0.00 from holding KDA Group or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
XXIX Metal Corp vs. KDA Group
Performance |
Timeline |
XXIX Metal Corp |
KDA Group |
XXIX Metal and KDA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with XXIX Metal and KDA
The main advantage of trading using opposite XXIX Metal and KDA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XXIX Metal position performs unexpectedly, KDA 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 KDA will offset losses from the drop in KDA's long position.XXIX Metal vs. First Quantum Minerals | XXIX Metal vs. Lundin Mining | XXIX Metal vs. Capstone Mining Corp | XXIX Metal vs. HudBay Minerals |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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