Correlation Between Kubera Gold and Source Rock

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

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

Diversification Opportunities for Kubera Gold and Source Rock

0.0

Correlation Coefficient

Kubera Gold  Source Rock

Pay attention - limited upside

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

Pair Corralation between Kubera Gold and Source Rock

If you would invest (100.00) in Source Rock Royalties on August 26, 2025 and sell it today you would earn a total of  100.00  from holding Source Rock Royalties or generate -100.0% return on investment over 90 days.

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

Kubera Gold Corp  vs.  Source Rock Royalties

Kubera Gold Corp

Risk-Adjusted Performance

Fair

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

Source Rock Royalties

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Source Rock Royalties are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Source Rock may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with Kubera Gold and Source Rock

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

The idea behind Kubera Gold Corp and Source Rock Royalties 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.