Correlation Between Granada Gold and Kermode Resources

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

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

Diversification Opportunities for Granada Gold and Kermode Resources

0.0

Correlation Coefficient

Granada Gold  Kermode Resources

Pay attention - limited upside

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

Pair Corralation between Granada Gold and Kermode Resources

If you would invest  1.00  in Kermode Resources on April 24, 2025 and sell it today you would earn a total of  0.00  from holding Kermode Resources or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Granada Gold Mine  vs.  Kermode Resources

Granada Gold Mine

Risk-Adjusted Performance

Very Weak

Over the last 90 days Granada Gold Mine has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in August 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Kermode Resources

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Granada Gold and Kermode Resources

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

The idea behind Granada Gold Mine and Kermode Resources 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.